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
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000104
11041.
I 0•0111
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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???