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HomeMy WebLinkAboutMinutes - August 30, 2016 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, AUGUST 30, 2016 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, August 30, 2016, commencing at 7:00 a.m. Present: Council Member Johnson, Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Absent: None Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo B. Topic(s) B-1 Review of Fleet Replacement Policy (PW) Public Works Director Charlie Swimley provided a PowerPoint presentation regarding the Fleet Replacement Policy. Specific topics of discussion included Fleet Services overview, division's service to City departments, in-house services, outsourced services, Fleet Policy history and objectives, policy guidelines, replacement/utilization guidelines, replacement process, fleet status, and comparisons to other cities and local companies. In response to Council Member Mounce, Mr. Swimley stated that OSHA regulates vehicles with cranes and that vehicles with diesel engines have regulation requirements as well. In response to Council Member Mounce, Mr. Swimley confirmed there are grants available for vehicles, adding that the City purchased a tractor utilizing federal grant money that replaced an aging, non-compliant vehicle. Mayor Pro Tempore Kuehne suggested that the vehicles used for undercover purposes in the Police Department be used cars and the stock be rotated. With regard to police motorcycles, he questioned why the mileage threshold was low at 60,000 miles, to which Fleet Services Supervisor Randy Laney responded that 60,000 miles is a good lifespan for a motorcycle since they typically last only 100,000 miles depending on highway mileage versus in -town mileage. In further response, Mr. Laney stated there are currently two electric motorcycles in the fleet; the new bikes are experimental; and staff is uncertain of their expected lifespan, but is hoping for at least 60,000 miles if the batteries last that long. Council Member Mounce pointed out that battery replacement on electric motorcycles is costly and staff will have to weigh the benefits of purchasing a new battery versus replacing the motorcycle. Mayor Pro Tempore Kuehne further suggested that the mileage limit for general purpose and light/medium commercial vehicles be increased. In response to Mayor Pro Tempore Kuehne, Mr. Swimley stated that older vehicles are sold at auction, and City Manager Schwabauer stated the City's policy prohibits the sale of vehicles and equipment to employees to prevent the appearance and encouragement of self dealing via subpar maintenance. Council Member Mounce stated that the sale of vehicles and equipment at a local auction would create competition among buyers and should be open to both employees and citizens alike and suggested amending the policy to make purchases at auction open to anyone. In response to Mayor Pro Tempore Kuehne, Mr. Laney stated that the City has utilized First 1 Capital from Vallejo for the last 15 years for auctioneering services. He stated the local company that Lodi previously utilized went out of business, the Galt company is not the most ideal situation, and the Modesto company may have also gone out of business. Mr. Laney stated that Lodi has a great working relationship with First Capital and the items are typically sold for higher amounts due to the Bay Area environment. He further stated that the City has utilized the public surplus website in the past; however, there was a problem with purchasers failing to re -register the City's vehicles. Mr. Laney stated that staff is considering utilizing the site again because new Shop staff may have time to invest in the endeavor. In further response, Mr. Laney stated there has been no discussion about collaborating efforts with the county. Council Member Mounce stated that the City should notify local citizens that vehicles will be available for auction so they have an opportunity to bid. In response to Council Member Nakanishi, Mr. Swimley stated the underground tanks are the diesel and gas tanks that store fuel under the fueling stations at the Municipal Service Center. Mr. Laney confirmed that all California Air Resources Board testing is done on site with a complete inspection. Council Member Nakanishi agreed with comments by Council Member Johnson at previous meetings that the City should consider adjusting the mileage requirements because they are too low as they currently stand. Mr. Laney reminded that the mileage levels are minimum guidelines and the City has many vehicles in current operation that are well over 150,000 miles. Council Member Johnson stated that he remains skeptical about the process; the comparison of other governmental agencies was not beneficial for him; he would have preferred to see further comparisons to private entities; and he believes the policy should be adjusted. He apologized for not meeting with Fleet staff previously after they provided him with requested information, but assured Council that he would meet with them in the near future for a further explanation on the policy. He believed the cost of parts and labor seem to be excessive, especially when there are advertisements for the same services for much less. With regard to the mileage guidelines, he believed those need to increase, but added there are more issues to be addressed in order to adequately maintain the City's fleet asset while saving money. Council Member Mounce thanked staff for doing a stellar job and expressed hope that a succession plan is in place to pass along staff's mentality of treating vehicles and equipment as one's own because it serves the City well. Mayor Chandler stated that he believed the policy is prudent, but agreed there could be room for further scrutiny and review. Myrna Wetzel suggested that the vehicle auctions be handled locally, similar to Lodi's bike auctions, so citizens can easily participate. C. Comments by Public on Non -Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 7:54 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 2 AGENDA ITEM TM CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Review of Fleet Replacement Policy MEETING DATE: August 30, 2016 (Shirtsleeve Session) PREPARED BY: Public Works Director RECOMMENDED ACTION: Review of Fleet Replacement Policy. BACKGROUND INFORMATION: The City's current Fleet Policy was adopted by City Council in March of 2008. The policy outlines the guidelines for replacing the various types of vehicles operated by the City. At the Shirtsleeve session, the Public Works Department will present a brief overview of Fleet Services and the current Fleet Policy, discuss the current vehicle replacement process, provide examples of City vehicles that are currently operating beyond the recommended schedule for replacement, and share comparisons with other agencies regarding their replacement schedules. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. CES/CES/tdb cc: City Engineer/Deputy Public Works Director Fleet Services Supervisor APPROVED: CL_Qcf2i2 Charles E. Swimley Jr. Public Works Director Schwabauer ' ity Manager K:\WP\COUNCIL\2016\CC Fleet Policy.doc 8/23/16 The City of Lodi Public Works i 000104 11041. I 0•0111 i 0004 Review of Fleet Replacement Policy August 30, 2016 Overview • Fleet Services Overview • Current Policy • Replacement Process • Fleet Status • Comparisons • Questions Fleet Services Overview • Departments: — Fire — Police — Transit — Public Works — Parks — Electric Utility — Community Development • Total Inventory: 450 Vehicles/Equip. — 288 Vehicles — 162 Equipment Fleet Services Overview • Electric Utility • Boom/Bucket Trucks (Regulated) • Dump Trucks • Backhoes/Loaders • Service Trucks • Pickups • Sedans/Vans • Trailers (1 Regulated) • Community Development • Trucks • Motor Pool • Sedans/Vans • Equipment • Utility Vehicles • Compressors/Compactors OP • Generators/Grinders/Small Sweepers/Blowers/Chain Saws/Etc. Fleet Services Overview Ladder Trucks Engines Support Vehicles 40 Police • Patrol Cars • Unmarked Cars • Motorcycles • Support Vehicles Transit • Para Transit Buses ("Cutaways") • Transit Buses Fleet Services Overview • Public Works • Street Sweepers • Dump/Vac Trucks (Regulated) • Dump Trucks (Not Regulated) • Backhoes/Loaders • Boom/Bucket Trucks • Service Trucks • Pickups • Sedans/Vans • Trailers (1 Regulated) • Parks • Dump Trucks • Backhoes/Loaders • Pickups • Sedans/Vans .:°x;111 r- 4 Services (In House) • Repairs — Engines/Brakes — Specialty • Emergency equipment • Construction equipment • Regulatory Oversight — DOT — CARB — OSHA • Parts — Inventory/Purchasing • Administrative — Reporting/Titles & Registration Services (Outsourced) • Special Testing — Smog Test — Opacity Test — Crane Certifications — Underground Storage Tank Testing • Specialty Repairs — Body Work and Paint — Fabrication and Welding — Windshield and Glass — Alignment Work — Automatic Transmission Work — Specialty Electronic Diagnostics Current Fleet Policy • Adopted in 2008 • Policy Objectives: - Provide safe, dependable, and clean vehicles to deliver services at the lowest possible cost. - Maximize utilization -minimize fleet size. - To establish overall policy direction by City Manager. Current Fleet Policy • Policy Guidelines: - City Council approval to increase fleet size and authorize donated vehicles. - City Manager is responsible for the fleet management, $50,000 purchasing authority. - Restricts use to City business with few exceptions. Current Fleet Policy • Replacement/Utilization Guidelines - Establishes criteria for replacement —approved by City Manager - Identifies replacement funding methodology a. Internal service fund b. Annual operating budgets - The City Manager to formally evaluate the utilization of City vehicles Current Fleet Policy Use Classification 1 Police Patrol Police Undercover 3. Police Motorcycles 4, Fire Engine 5. General Purpose Transportation 6. Light/Medium Commercial 7. Heavy Duty Commercial 8. Light Transit Buses 9. Heavy Transit Buses 10, Special Purpose Service Life (years) Anticipated Mileage by "Red" Year Notes Green Yellow Red < 4 4 to 6 > 6 100,000 • 3 3 to 8 > 8 80,000 < 3 3to5 >5 60,000 < 10 10 to 25 > 25 150,000 • 8 8 to 10 > 10 120,000 < 10 10 to 15 > 15 120,000 < 15 15 to 20 > 20 100,000 < 5 6 to 10 > 10 220,000 < 12 12 to 15 >15 500,000 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 Federa Transit Administration Per Federal Transit Administration Includes Fire Ladder Truck, Street Sweeper, Sewer Cleaner, Trailers and other special vehicles and equipment Replacement Process • Reasons for replacement: — Worn out or needing major/expensive repairs — Involved in major accident — Unsafe Replacement Process • Departments budget for new and replacement vehicles/equipment — Fleet Coordinator • Fleet evaluates department requests — Approval requires 5 separate signatures — Replacement Criteria/Funding — CM approval < $50k/Council notification — Council approval > $50k • Fleet assists with purchase/disposal — Specification/State Contract(s) — Disposal —auction / scrap Fleet Status • 73 out of 288 vehicles currently in service today meet or exceed the minimum replacement criteria (25%) • 1968 Ford F600 boot truck 48 years in service. • 1978 Ford F700 water truck 38 years in service. • 1978 Chevrolet 3/4 ton flat bed 38 years in service • 1983 Ford E350 box van 33 years in service Fleet Status • 1966 Chevrolet C60 in service for daily use from 1966 and removed from service July 2014 • Exceeded minimum replace criteria by 38 years Comparisons Organization Police Patrol City of Lodi - Fleet Services City of Sacramento Department of Public Works El Dorado County Fleet Services Placer County Sacramento Metropolitan Fire District Police Undercover Fire Engine Replacement Criteria Sedans and Light/Medium Heavy duty Pickups Commercial Commercial Special Purpose Comments Miles Years Miles Year Miles Years Miles Years Miles Years Miles Years Miles Year 100,000 6 80,000 8 150,000 20 120,000 10 120,000 15 100,000 20 Special Purpose Includes Street Individual Case Sweeper, Sewer Cleaner, Trailers Bases and Other special vehicle and equipment Based on point system vs. Miles & Years N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Any vehicle receiving 15 points or higher is scheduled for replacement Sedan 105k sedan Utility 110k AR 120k SUV AR NA 135k Sedan 120k SUV/PU 125 - 135 135k 2wd 12 150k 4x4 42719 NA 160k diesel 20 NA Internal annual 18 month usage swpr 8yr projections calculate bidding others 12- replacement list. Transportation 15 or AR Div. Heavy Equip judged on a 10 year plan and ARB-AQMD We're in the process of N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A implementing FASuite replacement and planning module anyone else using this? `Fire apparatus is 15 year front N/A N/A N/A N/A 150,000 20* 125,000 10 150,000 15 N/A N/A 150,000 20* line & 5 year reserve for a 20 year total. Comparisons • City of Sacramento — Utilizes a point system — Replaces vehicles at 15 points + • Age = 0-5 points • Mileage = 0-5 points • Maintenance cost = 0-10 points • Once Maintenance costs reach original purchase price = 10 points - 10% of original price = 1 point 20% = 2 points 30% = 3 points and so on Comparisons • Waste Management — Garbage Trucks • 8 Years (per franchise) — Roll offs (semi tractors to haul dumpsters) • 12-15 years — Supervisor trucks • 10 — 12 years • Evaluate based on a maintenance cost/purchase price ratio Comparisons • Greyson Engineering — Large diesel equipment • State Regulations (diesel emissions) • 10 — 15 year replacement • Repairs exceed value of vehicle — Forman Trucks • 10 - 12 year replacement • 150,000 — 200,000 miles • Extended replacement cycle — Emphasizes maintenance Comparisons • Clark Pest Control — Ford Rangers and F150's • 10 years +/- • 175,000 — 250,000 miles • Repairs exceed value of vehicle • Moved to "spare status" after 150,000 — 175,000 miles — Not depended on daily — Utilize video recording • Found to reduce maintenance/repair costs • Extended replacement cycle — Employs competition between branches Questions???