HomeMy WebLinkAboutAgenda Report - March 5, 2008 K-03AGENDA ITEM K03
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Revised Fleet Policy
MEETING DATE: March 5,2008
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt the attached revised Fleet Policy.
BACKGROUND INFORMATION: The City's current Fleet Policy was developed in 1998 and covers a
multitude of policy and administrative procedures. One significant
deficiency in the policy and its implementation is the lack of an
adequate mechanism for funding vehicle replacements. As partof
the overall City's goal to have financial stability with appropriate reserves, staff has proposed previously
that the cost of vehicles, both maintenance and replacement, be reflected in the operating budgets of
each Department. While the Council has been supportive of this general approach, questions have been
raised about the Fleet Policy and, in particular, the perception that the minimum replacement guidelines
in the policy become a defacto standard for replacement.
A new Fleet Policy (Exhibit A) has been drafted to address Council's concerns regarding replacement
and greatly simplify the policy by removing various administrative details. The proposed policy has three
sections:
• Objectives —the first two are edited versions of the existing policy and the third reflects the
proposal to remove all the administrative details from the Policy document.
• Policy Guidelines — "A." is new, again reflecting the removal of administrative details. The
remainder consists of edited versions of statements in the existing policy.
• Replacement and Utilization Guidelines — This is entirely new, replacing the details in the existing
policy. The proposed policy is summarized in Table A, ExhibitA, and the old policy is
summarized in Table 1, Exhibit B. The new guidelines are broken into three sections —
Replacement, Replacement Funding and Annual Utilization:
o Replacement guidelines are shown in Table Ain the new policy. The thirty-eight
categories of vehicle classes in the existing policy, based on the type of vehicle, is
simplified with nine classifications of vehicles based on type cf use, with common service
life characteristics plus one "Special Purpose" classification in which each vehicle and
piece of equipmentwould be addressed specifically. These are typically the "one or two -
of -a -kind" pieces with widely varying service lives which may have different measures
(such as hours on a generator). In addition, the concept of "service life" is proposed rather
than the old set number of years/miles of "first-line" operation. Service life is broken down
into three stages:
• "Green" —which is the first phase of use in which preventative maintenance should
be typical and the vehicle should perform well in service.
■ "Yellow" — is the second phase in which one would anticipate more repairs and the
vehicle should be evaluated annually and, perhaps more importantly, before any
major repair is made. For example, putting a new engine in a pickup truck that is
fourteen years old and has a weak transmission may not make sense. On the
APPROVED:, 110,222
Blair King, City Manager
K,WPIPOLICY%FLEET\CRevisedPolicY doc PV
212812008
Adopt Revised Fleet Policy
March 5,2008
Page 2
other hand, repairing a police patrol car and moving it to another use classification
may also be appropriate.
"Red" — is the third phase in which the vehicle is over the expected life for the
particular use classification. However, it might have useful life in another
classification or as a reserve vehicle.
o Replacement funding is addressed separately with an annual charge based on a
percentage of the replacement value, as described. The annual charge is in the process
of being developed. Staff is examining alternatives given various assumptions as to fund
balance available for vehicle replacement, as well as the age and condition of the current
fleet. A recommendationwill be made as part of the budget. One notable aspect of this
annual charge approach is that the charge would stop when the cumulative percentage
reaches 100%. This would be an incentive to extend vehicle use, both within the original
use classification or in another use.
o Annual utilization is also addressed separately. This refers to the number of miles a
vehicle accumulates in a year (or hours for equipment). This aspect of the policy is only
indirectly related to replacement but is more directly related to the number of vehicles in
the fleet. This criterion needs to be very use and/or vehicle specific and does not lend
itself to the broad use classifications described earlier. For example, a building inspector's
vehicle, even in busy times, is only driven around town to job sites and the inspectorwalks
to perform the inspection. Clearly that job needs a vehicle, but even when used every
day, it will not accumulate many miles. Other vehicles, given their use, can accumulate
many miles in a very short amount of time (i.e., street sweepers, transit buses).
Conversely, some vehicles may be used very little — perhaps it is being kept for
emergency or infrequent use, but if it is paid for and costs very little to maintain, then the
actual annual utilization is not as important.
As an additional piece of information, the current age of the City's fleet, compared to that in 2003, is
shown in Exhibit C. Clearly, the fleet has aged and vehicles are not being replaced per the old policy. As
shown on the chart, in 2003, 44 vehicles were one year old or less. In 2007, only 22 were less than one
year old. What is not shown on the chart is that approximately 50% of the fleet is past the replacement
criteria in the old policy. The proposed policy is intended to be more reflective of reality in terms of how
vehicles are actually considered for replacement.
One aspect of vehicle replacementthat is not directly addressed in the proposed policy has to do with
"green" vehicles. The City has already moved towards use of compressed natural gas fuel for many
vehicles and, given various grant and subsidy programs available, this falls under the "lowest cost"
aspects of the existing and proposed policies. However, the City could consider a more aggressive
approach and, as a matter of policy, acquire more vehicles that use alternative fuels or technology (such
as hybrid vehicles). This could be addressed at this time, specifically for vehicles, or addressed with
overall policy direction on sustainable practices.
FISCAL IMPACT: The fiscal impact of simply approving the policy is minimal. The real impact
will be in establishing the replacement ("lease") rates as part of the budget.
FUNDING AVAILABLE: Not applicable. ��9"
Richard C. Prima. Jr.
Public Works Director
RCPlpmf
Attachments
cc: Dennis Callahan, Fleet and Facilities Manager
K IWPIPOLICYSFLEETICRevisedPolicv.doc 2/28/2008
CITY OF LODI FLEET POLICIES
Adopted by the Lodi City Council, (date), Resolution #
OBJECTIVES
Exhibit A
A. To provide safe, dependable, and clean vehicles used by the City in delivering services at
the lowest possible cost.
B. To achieve the maximum utilization of each vehicle in order to keep the overall fleet size to
an effective minimum.
C. To establish overall policy direction regarding the City's fleet for administrative
implementation as directed by the City Manager.
POLICY GUIDELINES
A. The City Manager is responsible for the management, operation, acquisition, and disposal of City
owned and leased vehicles as guided by this policy and shall establish administrative procedures
and rules as appropriate.
B. Requests to increase the size of the City fleet shall be approved by the City Council either
through budget process or as appropriate during the course of the fiscal year.
C. The City Manager is authorized to solicit bids and award contracts for the purchase of
approved vehicles costing $50,000 or less per vehicle. Purchases exceeding $50,000 per
vehicle require the approval of the City Council prior to soliciting and awarding bids.
D. The City Manager may authorize the sale or disposal of surplus vehicles which have been
removed from the City fleet.
E. The City Council shall specifically approve acceptance of grant funded and donated
vehicles. The approval is to include a determination as to whether or not the vehicle shall
be included in the replacement program.
F. City vehicles may not be used for personal business except for nominal, incidental use
when the vehicle is assigned to an employee as an integral component of the employee's
compensation as specifically authorized by the City Manager. No City vehicles should be
taken home except those approved by the City Manager.
REPLACEMENT AND UTILIZATION GUIDELINES
A. Replacement Guidelines are shown in Table A and reflect the range of conditions and
circumstances under which each replacement shall be reviewed and approved by the
City Manager. Accordingly, the decision to replace a vehicle is to be based on cost of
operation, maintenance status, vehicle condition, major repairs anticipated and resale
value, not solely due to age/mileage.
B. Replacement funding is to be provided in the form of an annual "lease rate" or equivalent
internal service charge or funding mechanism as established by the City Manager as part
of the operating budget of each Department/activity and set aside in replacement funds.
Funds for each enterprise/Department shall be tracked. The annual amount shall be a
percentage of the anticipated replacement value of the vehicle until the cumulative charge
reaches 100%. Charges to third parties for work by City forces shall include all costs of
vehicle ownership and the appropriate portion also be placed in the replacement fund.
C. The City Manager shall, at least bi-annually, formally evaluate the utilization of City
vehicles to assist in the evaluation of vehicle replacement, re -use of vehicles within the
City fleet, and the need for additional vehicles. Alternative transportation, such as vehicle
allowances, paying mileage or rental/lease agreements or use of a vehicle pool, is to be
considered before adding additional vehicles to the City's fleet or replacing a City vehicle.
K:\WP\POLICY\FLEET\CRevisedPolicy_Attachment.doc 2/28/2008
TABLE A
GUIDELINES FOR REPLACEMENT
1) These guidelines are to guide consideration of vehicle replacement and major repairs. The decision to replace a
specific vehicle or piece of equipment will be based on cost of operation, maintenance status, and general
vehicle or equipment condition.
2) Use Classification indicates the main use; recognizing that a specific vehicle unsuitable for a particular use may
be suitable in another classification.
3) Service Life is the typical life -cycle of a vehicle within the Use Classification broken down into phases as follows:
a. Green: Vehicle is maintained in normal fashion.
b. Yellow: In addition to above, vehicle is reviewed annually and prior to embarking on major repairs.
Pending the results of the review, the vehicle is either kept in service for another year, removed from
service, or repaired and placed back into service.
c. Red: Vehicle is beyond preferred service life for that Use Classification and, in addition to above, should
be considered high priority for removal from service.
4) Removal from service would include replacement if determination is made that need for vehicle still exists.
Vehicle shall also be considered for alternate service within the City fleet.
5) Use beyond preferred service life includes extended service if previous major repairs extended the useful service
life, "reserve" or similar backup type use, or alternate use in another classification within the City fleet.
Notes
Relatively short service life
recognizes need to maintain
undercover anonymity and assumes
possible use of used vehicles
Typically keep reserve engine(s)
Includes sedans, minivans, compact
pickups
Generally less than 2 Ton load rating
Vans, full-size pickups, light service
trucks
May vary with installed equipment
Heavy service trucks, dump trucks
Per Federal Transit Administration
Per Federal Transit Administration
Includes Fire Ladder Truck, Street
Sweeper, Sewer Cleaner, Trailers
and other special vehicles and
equipment
K:\WP\POLICY\FLEET\CRevisedPolicy_Attachment.doc 2/28/2008
Service Life (years)
Anticipated
Mileage by
Use Classification
Green
Yellow
Red
"Red" Year
1.
Police Patrol
< 4
4 to 6
> 6
100,000
2.
Police Undercover
< 3
3 to 8
> 8
80,000
3.
Police Motorcycles
< 3
3 to 5
> 5
60,000
4.
Fire Engine
< 10
10 to 25
> 25
150,000
5.
General Purpose Transportation
< 8
8 to 10
> 10
120,000
6.
Light/Medium Commercial
< 10
10 to 15
> 15
120,000
7.
Heavy Duty Commercial
< 15
15 to 20
> 20
100,000
8.
Light Transit Buses
< 5
6 to 10
> 10
220,000
9.
Heavy Transit Buses
< 12
12 to 15
> 15
500,000
10.
Special Purpose
Specific
to each vehicle/equipment
as
approved by the City Manager
Notes
Relatively short service life
recognizes need to maintain
undercover anonymity and assumes
possible use of used vehicles
Typically keep reserve engine(s)
Includes sedans, minivans, compact
pickups
Generally less than 2 Ton load rating
Vans, full-size pickups, light service
trucks
May vary with installed equipment
Heavy service trucks, dump trucks
Per Federal Transit Administration
Per Federal Transit Administration
Includes Fire Ladder Truck, Street
Sweeper, Sewer Cleaner, Trailers
and other special vehicles and
equipment
K:\WP\POLICY\FLEET\CRevisedPolicy_Attachment.doc 2/28/2008
GUIDELINES FOR UTILIZATION/REPLACEMENT
TABLE 1
r
o These guidelines are benchmarks to qualify for consideration when developing replacement requirements for City vehicles and equipment. Additionally,
A the decision to replace a vehicle or piece cf equipment wi71 be based on cost cf operation, maintenance status, and general vehicle or equipment
0 condition.
0
0
Vehicle/Equipment Classes
1. Passenger Vehicle
A. Police Patrol
B. Police Undercover
C. Other Sedans/Compact Pickups/Minivans
2. Motorcycles/Scooters
A
Police
B.
Other
3. Emergency Vehicles
A.
Fire - Utility Vehicles
B.
Fire - Pumper
C.
Fire -Aerial Trucks
D.
Other Fire Vehicles
E.
Other (Electric Utility Service Truck)
4. Light/Medium-Weight Commercial (less than 2 tons)
Replacement
Guidelines
10 years
Years cf
Miles cf
Reserve Period/
First -Line
First -Line
Secondary Use
Operation*
Operation
(if any)
4 years
90,000 miles
10 years
4 years
60,000 miles
3 years
7 years
60,000 miles
F.
3 years
45,000 miles
85,000 miles
7 years
3,000 hours
4 years
5 years
15 years
20 years
7 years
8 years
65,000 miles
A
Pickups (full-size)
10 years
85,000 miles
R
Vans
10 years
85,000 miles
C.
Service Trucks
10 years
85,000 miles
D.
Dump Trucks
10 years
85,000miles
E.
Transit B u s e s
4 years
120,000 miles
F.
Other
10 years
85,000 miles
5. Trailers
A. General Trailers
B. Specialty Trailers
15 years
15 years
5 years
5 years
2 years
Utilization Guidelines
Miles Hours of
Per Year Operation
Per Year
15,000
6,500
6,500
11,250
6,500
6,500
6,500
6,500
22,500
6,500
300
M
x
W
T
r
T
T
GUIDELINES
FOR UTILIZATION/REPLACEMENT (cont.)
a
A
o
Replacement
Guidelines
Utilization Guidelines
Years of
Miles of
Reserve Period/
Miles
Hours of
First -Line
First -Line
Secondary Use
( Per Year
Operation
Operation*
Operation
(if any)
i
Per Year
6. Heavy Commercial (more than 2 tons)
A. Service Trucks
15 years
B. Dump Trucks
15years
85,000 miles
4,250
C. Street Sweeper
6 years
50,000 miles
6 years
6,250
D. Aerial Bucket Trucks (high -range)
10 years
E. Aerial Bucket Trucks (medium -range)
8 years
F. Digger/Derrick Trucks
10 years
G. Transit Buses
5 years
160,000 miles
24,000
7. Miscellaneous Vehicles/Equipment
A. Construction/Material Handling
15 years
is,
(items not listed below)
B. Mowers
6 years
6,000 hours
6 years
i
750
C. Marine (boats)
20 years
D. Specialty Equipment
E. Slip -Box Paver
20 years
F. Motor Graders
20 years
G. Backhoe/Loaders
7 years
8 years
H. Air Compressors
10 years
2,000 hours
150
I. Medium Crane
10 years
5 years
J. TV Inspection System
8 years
K. Hydro -Jet Sewer Cleaner
6 years
6 years
L. Rough -Terrain Crane
20 years
M. Leaf Sweeper
5 years
I
*Years of operation are measured from the original in-service date. Accordingly, years of City operation will be less for used vehicles and any cost
analysis of new
versus used vehicles will reflect the lower estimated life of used equipment.
zt
N
co
8
W
EXHIBIT C
City of Lodi Vehicle Ages 2007 vs. 2003
■ 2007 ■ 2003
50
45
40
35
y
d
t" 30
d
c 25
`m
£ 20
0
z
15
10
5
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57
Age (Years)
K:\WP\POLICY\FLEET\CRevisedPolicy_Attachment.doc 2/28/2008
Revised Fleet Policy
Lodi City Council
March 5, 2008
[Background J
■ Current Policy Adopted in 1998
o Includes administrative details not pertinent for a
policy document
o Impression that guidelines for usage have
become standard for replacement
o Did not address funding
■ Need to Address Funding
o Include O&M and replacement in annual
Departmental budgets
o Re-examine replacement guidelines
F"
[Proposed Policy Objectives J
A. Safety at the lowest possible cost
B. Maximum utilization ... to minimize
fleet size
c. Policy direction ... administrative
implementation by the City Manager
3
Safety J
Get safety check on a -'ging car-,
D9WTMWdRMPMy1997
Honda Accord has 2 , o
miles. It still rums gran kL and
doesn't tee any oil. Tbam are
&ome pr bkrns I could talo
rare a� like a clicking frm an
Acle, std that antis pretty worn
out and a pittfd wlindshiM. But
rall.It runs well. My brother
Tom & R 'MagNOZA
CZFok ands
Tom: You're almost always
better off, economically, keeping
an old car rather than buying a
new one. So if you address
any safety issues, you have our
blessing to keep driving this
heap.
and.plttedd should b$
*n that list_
yaw you're almost Always
batter off, cowuxukaft keo-
Ing an cdd car rather than buy-
ingamane, SQif Wdress
wW mfetyissues, you harms out
bleixg tKxdriving this
Aw. Vight. If it was just you,
iedbenobig&U You call tbr
help on yourcellplahe and wait
Amndfors whll*. But ifiesa
hot ft, andyDur last diaper is
soiled, waitirig a couple ofhours
for AAto showupeould be
gra crisisq.
4
[Utilization J
■ City of Lodi has a far wider range of
activities that need vehicles than
nearly any business, and certainly, any
individual citizen
■ Our practice needs to balance
operational needs with available
funding
5
[Administration J
■ Policy that is adopted by the City
Council should not deal in operational
details
■ Even the best policies are subject to
implementation in the annual budget
■ Revised policy is consistent with
previous policy in overall objectives
1.1
[Policy Guidelines J
A. City Manager is responsible for administrative procedures. NEW
Rest is paraphrased from current policy:
B. Requests to increase the size of the City fleet shall be approved by
the City Council...
C. City Manager authorized to purchase approved vehicles costing
$50,000 or less.
D. City Manager authorized to sell surplus vehicles removed from the
fleet.
E. City Council to approve acceptance of grant funded and donated
vehicles, including determination as to replacement.
F. City vehicles may not be used for personal business with limited
exceptions.
7
[Replacement and Utilization 1
Guidelines
A. Replacement Guidelines are shown in Table A
and reflect the range of conditions and
circumstances under which each replacement
shall be reviewed and approved by the
City Manager. Accordingly, the decision to
replace a vehicle is to be based on cost of
operation, maintenance status, vehicle
condition, major repairs anticipated and resale
value, not solely due to age/mileage.
1.1
[Guidelines for Replacement 1
Table A - Notes
1) Reinforces policy — replacement
based on cost of operation,
maintenance status, and general
vehicle or equipment condition.
2) Use Classification — main use; vehicle
unsuitable for a particular use may be
suitable for another.
[Guidelines for Replacement — 1
Table A - Service Life
3) Service Life is the typical life -cycle of a vehicle within the
Use Classification broken down into phases as follows:
a. Green: Vehicle is maintained in normal fashion.
b. Yellow: In addition to above, vehicle is reviewed
annually and prior to embarking on major repairs.
Pending the results of the review, the vehicle is either
kept in service for another year, removed from service, or
repaired and placed back into service.
�. Red: Vehicle is beyond preferred service life for that Use
Classification and, in addition to above, should be
considered high priority for removal from service.
10
Service Life (years) Anticipated
Mileage by
Use Classification Green Yellow Red "Red" Year Notes
1. Police Patrol < 4 4 to 6 > 6 100,000
2. Police Undercover < 3 3 to 8 > 8 80,000
3.
Police Motorcycles
< 3
3 to 5
> 5
60,000
4.
Fire Engine
< 10
10 to 25
> 25
150,000
5.
General Purpose
< 8
8 to 10
> 10
120,000
Transportation
6.
Light/Medium Commercial
< 10
10 to 15
> 15
120,000
7.
Heavy Duty Commercial
< 15
15 to 20
> 20
100,000
8.
Light Transit Buses
< 5
6 to 10
> 10
220,000
9.
Heavy Transit Buses
< 12
12 to 15
> 15
500,000
10.
Special Purpose
Specific
to each vehicle/equipment
as approved by the
City Manager
Relatively short service life
recognizes need to maintain
undercover anonymity and
assumes possible use of used
vehicles
Typically keep reserve engine(s)
Includes sedans, minivans,
compact pickups
Generally less than 2 Ton load
rating
Vans, full-size pickups, light
service trucks
May vary with installed equipment
Heavy service trucks, dump trucks
Per Federal Transit Administration
Per Federal Transit Administration
Includes Fire Ladder Truck, Street
Sweeper, Sewer Cleaner, Trailers
and other special vehicles and
equipment
[Replacement Funding J
B. Annual "lease rate" or equivalent internal
service charge or funding mechanism
Part of the operating budget
Amount is % of replacement value
Ends at 100%
12
[Utilization J
C. Bi -annual evaluate the utilization of City
vehicles
Consider re -use of vehicles within the City
fleet.
Before adding, consider alternative
transportation (vehicle allowances,
paying mileage or rental/lease
agreements or use of a vehicle pool
13
[Policy Implications J
■ Policy will be implemented in annual budget
■ Budget considerations in any given year
may affect how policy is implemented
■ Example:
o Current policy, if implemented at replacement
intervals as stated, mean General Fund
replacement expenditures of over $1 million
annually
o However, replacement fund has been funded at
approximately $350,000/yr and less
14
Fleet Age _ J
City of Lodi Vehicle Ages 2007 vs. 2003
�02007 ■ 2003
50
45
40
d
35
`-'
m
30
c
25
L
d
E
20
Z
15-
10
5
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57
Age (Years)
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
NIA
[Theoretical Replacement Costs J
Theoretical Vehicle Replacment Costs
tTotal Fleet --E--General Fund
FY08109 FY09110 FY10111 FY11112 FY12113 FYI 3/14 FY14115 FY15116 FY16117 FYI 7/18 FY18119 FYI 9120 FY20121 FY21122 FY22123
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
NIA
["Smoothed" Replacement J
"Smoothed" Replacement Costs
1--o—Total Fleet }General Fund Only Annual Vehicle Charge (Gen. Fund)
FY08109 FY09/10 FY10/11 FY11/12 FY12/13 FYI 3/14 FY14115 FY15/16 FY16/17 FY17/18 FY18119 FYI 9120 FY20/21 FY21/22 FY22/23
17
$3,000,000
Oe4 -
Annual Increase on Lease Rates,
3.0%
Interest Rate on Fund Balance, 2.5%
Annual Increase in Purchase Costs,
4.0%
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$(500,000)
$(1,000,000)
$(1,500,000)
$(2,000,000)
Vehicle Replacement Fund (General Fund)
(with inflated costs & interest)
Fund Balance —Lease Revenue Interest Earnings on Fund Balance—Replacement Expenditures --+-- Fund Balance % of Fleet Value
FY08109 FY09110 FY10111 FY11112 FY12113 FY13114 FY14115 FY15116 FY16117 FY17118 FY18119 FY19120 FY20121 FY21122 MUD
16%
- 14%
-12%
- 10%
- 8%
.6%
-2%
- 0%
Potential Lease Rates
Department Repl. Value Count Draft Average Annual
Lease Rate Amount
* POLICE
$
1,947,400
79
13%
$
253,200
* FIRE
$
6,107,000
23
5%
$
305,400
WATER
$
25,100
13
9%
$
2,300
WASTE
$
1,203,700
33
9%
$
108,300
WWW
$
963,100
33
7%
$
67,400
STREET
$
2,421,700
88
per CIP
$ -
FLEET
$
89,600
6
7%
$
6,300
FACILITIES
$
68,700
9
7%
$
4,800
COMM DEV
$
73,600
6
8%
$
5,900
* LIBRARY
$ -
1
$ -
* ENG
$
158,500
6
8%
$
12,700
ELEC UTIL
$
2,706,400
66
8%
$
216,500
* FINANCE
$
116,100
4
7%
$
8,100
* HUT ST SQ
$
68,500
4
11%
$
7,500
* MTR POOL
$
201,100
11
9%
$
18,100
* P & R
$
1,607,000
63
9%
$
144,600
TRANS -DAR
$
2,090,800
24
per CIP
$ -
TRANS-GRPL
$ 3,810,800
7
per CIP
-
Totals:
$
23,659,100
476
$
1,161,100
w/o veh's/eq. not on replacement
333
schedule:
19
* General Fund
$
10,205,600
$
749,600
Only:
[Summary/Recommendation
■ Policy objectives same
■ More emphasis on funding mechanism
■ Actual funding to be implemented in
annual budget
■ Comments/Questions?
■ Recommend revised policy be
adopted
20
CITY OF LODI FLEET POLICIES
Adopted by the Lodi City Council, March 5, 2008
OBJECTIVES
A. To provide safe, dependable, and clean vehicles used by the City in delivering services at
the lowest possible cost.
B. To achieve the maximum utilization of each vehicle in order to keep the overall fleet size to
an effective minimum.
C. To establish overall policy direction regarding the City's fleet for administrative
implementation as directed by the City Manager.
POLICY GUIDELINES
A. The City Manager is responsible for the management, operation, acquisition, and disposal of City
owned and leased vehicles as guided by this policy and shall establish administrative procedures
and rules as appropriate.
B. Requests to increase the size of the City fleet shall be approved by the City Council either
through budget process or as appropriate during the course of the fiscal year.
C. The City Manager is authorized to solicit bids and award contracts for the purchase of
approved vehicles costing $50,000 or less per vehicle. Purchases exceeding $50,000 per
vehicle require the approval of the City Council prior to soliciting and awarding bids.
D. The City Manager may authorize the sale or disposal of surplus vehicles which have been
removed from the City fleet.
E. The City Council shall specifically approve acceptance of grant funded and donated
vehicles. The approval is to include a determination as to whether or not the vehicle shall
be included in the replacement program.
F. City vehicles may not be used for personal business except for nominal, incidental use as
authorized by the City Manager. No City vehicles should be taken home except those
approved by the City Manager and periodically ratified by the City Council.
REPLACEMENT AND UTILIZATION GUIDELINES
A. Replacement Guidelines are shown in Table A and reflect the range of conditions and
circumstances under which each replacement shall be reviewed and approved by the
City Manager. Accordingly, the decision to replace a vehicle is to be based on cost of
operation, maintenance status, vehicle condition, major repairs anticipated and resale
value, not solely due to age/mileage.
B. Replacement funding is to be provided in the form of an annual "lease rate" or equivalent
internal service charge or funding mechanism as established by the City Manager as part
of the operating budget of each Department/activity and set aside in replacement funds.
Funds for each enterprise/Department shall be tracked. The annual amount shall be a
percentage of the anticipated replacement value of the vehicle until the cumulative charge
reaches 100%. Charges to third parties for work by City forces shall include all costs of
vehicle ownership and the appropriate portion also be placed in the replacement fund.
C. The City Manager shall, at least bi-annually, formally evaluate the utilization of City
vehicles to assist in the evaluation of vehicle replacement, re -use of vehicles within the
City fleet, and the need for additional vehicles. Alternative transportation, such as vehicle
allowances, paying mileage or rental/lease agreements or use of a vehicle pool, is to be
considered before adding additional vehicles to the City's fleet or replacing a City vehicle.
(Payment of vehicle allowances shall be specifically approved by the City Council.)
K-MPPOLICYTLEE RRevised Fleet Policy- 2008.doc 3/6/2008
TABLE A
GUIDELINES FOR REPLACEMENT
1) These guidelines are to guide consideration of vehicle replacement and major repairs. The decision to replace a
specific vehicle or piece of equipment will be based on cost of operation, maintenance status, and general
vehicle or equipment condition.
2) Use Classification indicates the main use; recognizing that a specific vehicle unsuitable for a particularuse may
be suitable in another classification.
3) Service Life is the typical life -cycle of a vehicle within the Use Classification broken down into phases as follows:
a. Green: Vehicle is maintained in normal fashion.
b. Yellow: In addition to above, vehicle is reviewed annually and prior to embarking on major repairs.
Pending the results of the review, the vehicle is either kept in service for another year, removed from
service, or repaired and placed back into service.
c. Red: Vehicle is beyond preferred service life for that Use Classification and, in addition to above, should
be considered high priority for removal from service.
4) Removal from service would include replacement if determination is made that need for vehicle still exists.
Vehicle shall also be considered for alternate service within the City fleet.
5) Use beyond preferred service life includes extended service if previous major repairs extended the useful service
life, "reserve" or similar backup type use, or alternate use in another classification within the City fleet.
Use Classification
1. Police Patrol
2. Police Undercover
Service Life (years) Anticipated
Mileaqe by
Green Yellow Red "Red" Year
<4>6
'3 >8
4to6
3to8
Notes
100,000
80,000 Relatively short service life
recognizes need to maintain
undercover anonymity and assumes
possible use of used vehicles
3.
Police Motorcycles
< 3
3 to 5
> 5
60,000
4.
Fire Engine
< 10
10 to 25
> 25
150,000
Typically keep reserve engine(s)
5.
General Purpose Transportation
< 8
8 to 10
> 10
120,000
Includes sedans, minivans, compact
pickups
Light/Medium Commercial
< 10
10 to 15
> 15
120,000
Generally less than 2 Ton load rating
Vans, full-size pickups, light service
trucks
7.
Heavy Duty Commercial
< 15
15 to 20
> 20
100,000
May vary with installed equipment
Heavy service trucks, dump trucks
8.
Light Transit Buses
< 5
6 to 10
> 10
220,000
Per Federal Transit Administration
9.
Heavy Transit Buses
< 12
12 to 15
> 15
500,000
Per Federal Transit Administration
10.
Special Purpose
Specific to each vehicle/equipment as
Includes Fire Ladder Truck, Street
approved by the City
Manager
Sweeper, Sewer Cleaner, Trailers
and other special vehicles and
equipment
Approved: -7. (� A)
Blair King, nager date
KAWP\POLICY\FLEET\Revised Fleet Policy-2008.doc
3/6/2008