Fleet Services Strategic Plan Update - the City of Boise

Fleet Services Strategic PlanUpdate

Boise City Council11/18/2008

ImprovementStrategy 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

ImprovementStrategy 2






Develop Policy Manual2.1 Analyze peer city policies andadministrative regulations2.2 Draft Manual

7.3 Determine if responsibility for City's fuel transactions should be centralized under Fleet Services after software implementation.

Fuel and Supply Maintenance7.1 Review the city's supply and fuel procurementpolicies, procedures and practices. Modify as needed.7.2 Analyze fleet related transactions andestablish formal contracts ie: Parts & Services

Fleet Replacement Planning

Cost Control, Cost Allocation,and Charge-Back Rates

Fleet Management Information System (FMIS)

Maintenance Operations

5.5 Implement FMIS system

5.1 Identify budget for FMIS acquisition5.2 Develop FMIS specification criteria

6.6 Create a comprehensive maintenance proceduremanual reflecting centralized operation6.7 Basic interim Service Level Agreementsprovided to Departments for 2009 budget

6.4 Develop a facility space needs assessment for the fleet6.5 Develop a mechanic training program

6.2 Create an office for Fleet Service Manager in City Shop6.3 Develop and implement an outsourcing strategythat has the "Best Bang for the Buck"

6.1 Combine the technicians located in various departmentsthroughout the city into a central managed maintenance operation

5.3 Obtain Council approval to fund FMIS (Trimester II)5.4 Place FMIS specification criteria out to bid if necessary

4.1 Develop FY 2010/2011 centralized fleet budgetincluding capital costs (depreciation,reserve fundcharges, and/or lease payments), maintenance andrepair costs, fuel costs, and an appropriate allocationof indirect and overhead costs4.2 Develop capital cost charge-back rates4.3 Develop operating costs charge-back rates

3.4 Develop a long-range replacement plan3.5 Analyze alternative financing approaches

1.2 Create a Fleet Advisory Board1.3 Update business plan ESD to reflectre-organization to Fleet Services

3.1 Develop official fleet replacement criteria3.2 Develop fleet replacement policy3.3 Conduct a right-sizing analysis

City of Boise

Improvement Strategiesand Action Plans Q-3 FY 2008 Q-4 FY 2008 Q-1 FY 2009 Q-2 FY 2009

Department of Finance and AdministrationDivision of Fleet Services

Boise City Strategic BusinessPlan Project - GANTT Chart

Task Description - Information TechnologyAdministration and Implementation

1.1 Develop a centralized fleet budget

Q-2 FY 2008

Improvement Strategies and Action Plans

• Assemble the Fleet Services Team

• 1/23/08 the new Fleet Services Division met the new Fleet Manager

• All Personnel received the Strategy Map Training

• All 17 new Fleet personnel were officially moved into F&A on 3/1/08


• Develop a centralized Fleet Services budget

• The Fleet Services budget wascompleted 2/12/08

• Create a Fleet Advisory Board

• First “FAT” meeting was held 2/29/08


• Fleet Management Information System ”FMIS”

• City Council approved budget reallocation of funds 2/19/08

• Develop FMIS Specifications

• 3 FMIS systems were evaluated and CCG FASTER was selected


• Purchasing Process for the FMIS software

• The FASTER software system was purchased off an existing Canyon County contract

• City Council approved this procurement on 5/6/08


• Develop a Fleet Policy Manual

• 10 current City and State fleet policies were reviewed in March & April

• Fleet Policy was Approved by Council 9/23/2008

• Fleet Maintenance, Fleet Procurement, Anti Idling Regulations along with the Fleet Policy are currently listed in the Fleet Operations Manual


• Purchase low emission fuel efficient type vehicles

• Implement daily fuel efficient practices

• Auction off surplus vehicles

• 89 vehicles auctioned in 2008 for a total of $134,480


• Review City wide Fueling Sites and Procedures

• 11 city owned fueling sites were visited in April

• Only two sites were electronically controlled all others will need to be upgraded in order to communicate with the FMIS system

• After the upgrades are completed Fleet Services will have the ability to manage all of the city’s fuel transactions


• Develop an outsourcing opportunity plan

• 21 Police patrol car up-fits were outsourced.

• 5 BMW Motorcycles were purchased and 90% factory set-up

• We are also exploring future Parts Outsourcing opportunities.

Equivalent Annual Cost Analysis

REPLACEMENT CYCLE 1 2 3 4 5 6 7 8 9Mileage at Replacement 12000 24000 36000 48000 60000 72000 84000 96000 108000

CAPITAL COSTTotal Residual Value 21,200.00$ 18,020.00$ 16,758.60$ 15,585.50$ 12,156.69$ 7,294.01$ 3,647.01$ 1,823.50$ 911.75$

Annual Depreciation 3,180.00$ 1,261.40$ 1,173.10$ 3,428.81$ 4,862.68$ 3,647.01$ 1,823.50$ 911.75$ 455.88$

Cumulative Depreciation 3,180.00$ 4,441.40$ 5,614.50$ 9,043.31$ 13,905.99$ 17,552.99$ 19,376.50$ 20,288.25$ 20,744.12$

OPERATING COSTMean Annual M&R Cost from FMIS

Extrapolated Annual M&R Cost 1,785.00$ 1,785.00$ 1,785.00$ 2,100.00$ 2,100.00$ 2,100.00$ 2,600.00$ 2,600.00$ 2,600.00$

Annual Fuel Cost 870.00$ 870.00$ 870.00$ 870.00$ 870.00$ 870.00$ 870.00$ 870.00$ 870.00$

Total Annual Operating Cost 2,655.00$ 2,655.00$ 2,655.00$ 2,970.00$ 2,970.00$ 2,970.00$ 3,470.00$ 3,470.00$ 3,470.00$

Cumulative Operating Cost 2,655.00$ 5,310.00$ 7,965.00$ 10,935.00$ 13,905.00$ 16,875.00$ 20,345.00$ 23,815.00$ 27,285.00$

TOTAL COSTAnnual Total Cost 5,835.00$ 3,916.40$ 3,828.10$ 6,398.81$ 7,832.68$ 6,617.01$ 5,293.50$ 4,381.75$ 3,925.88$

Cumulative Total Cost 5,835.00$ 9,751.40$ 13,579.50$ 19,978.31$ 27,810.99$ 34,427.99$ 39,721.50$ 44,103.25$ 48,029.12$

NPV of Cumulative Total Cost 5,504.72$ 9,199.43$ 12,810.85$ 18,847.46$ 26,236.78$ 32,479.24$ 37,473.11$ 41,606.84$ 45,310.49$

Equivalent Annual Cost 5,669.86$ 4,807.72$ 4,529.02$ 5,070.48$ 5,728.92$ 5,995.59$ 6,014.67$ 5,927.16$ 5,819.40$

Mechanic Productivity Measurement (Monthly)

TERRY HARDIN

Measurement Period: April-08 (22 workdays, 8 hours per day)

A. Total Payroll Hours For Technicion 181.5B. Total Paid Non Working Hours: Vacation, Sick, Ect. 13.5C. Total Technician Availability Hours 168

D. Total hours For Breaks 10.5

Total hours for Cleanup 6

Total hours for Shop Work Assignments 5 Total hours for Safety / Shop Meetings 2 Total: Expected Productive Hours (C – D) 145

E. Total Productive Hours for Technician for the period: 123.18Technician Productivity for the period: (C divided by total of B)

85%

Technician Productivity standards vary greatly throughout the Fleet Industry. Generally accepted ranges may fall between 70% - 80% when labor hour charges are based on actual time spent on repair operations. Standards may be in the 80% - 90% range when labor standards are used exclusively in determining labor hour charges.

Fleet Services New Pilot Positions Recommendation

• Light Mechanic• Fuel Clerk• Vehicle Porter

Fleet Services Top Three Challenges

• Service and repair vehicles in a timely manner• Capture true cost per mile• Provide scheduled maintenance that has

minimal impact on operations

Service and Repair Vehicles in a Timely Manner

• Change the shop hours of operation• Stop outfitting vehicles for outside

agencies• Implement mobile services• Institute a light mechanic pilot position

Capturing True Cost per Mile

• Implement a total fleet management information system with fuel accounting.

• Centralize all vehicle fueling transactions.• Institute a fuel clerk pilot position.

EXPENSE ITEM AMOUNT CATEGORY SUMMARY TOTAL COSTWages & Benefits $791,631 Salary & Benefits Salary & Benefits $796,631Overtime $5,000 Salary & Benefits Admin Expense $63,275Software Agreements $18,500 Building Expense Parts & Supplies $467,000Office Supplies $850 Admin Expence Building Expense $75,575Utilities $21,875 Building Expense Sublet Services $265,667Travel & Training $8,775 Admin Expence Shop Expense $249,995Janitorial Services $3,200 Building ExpenseCapital Expenditures $32,000 Building ExpenseRefuse Services $1,975 Admin Expence Total Cost $1,918,143Uniforms $5,570 Shop ExpenseShop Tools & Equipment $6,900 Shop Expense F&A Cost Reimbursment $30,675 Admin Expence Fuel 525,000Misc Admin Expense $21,000 Admin Expence Fuel Cost $2,155,600Misc Shop Costs $25,725 Shop ExpenseBuilding & Equipment R&M $43,600 Shop ExpenseBuilding Payment $168,200 Shop ExpenseParts & Supplies $467,000 Parts & SuppliesSublet Costs $265,667 Sublet Services

Total Cost $1,918,143

Gallons of Fuel Purchased 525,000 Fuel GallonsTotal Fuel Cost $2,155,600 Fuel Cost

Repair Cost - Fuel Cost

Providing Scheduled Maintenance that has Minimal Impact on

Operations• Implement a vehicle pickup and delivery

service that does not charge a full shop rate.

• Provide a shuttle van service to customers• Institute a vehicle porter pilot position.

Summary

• 2009 pilot positions will give the Fleet Services team an opportunity to evaluate and make appropriate recommendations for the next budget cycle.

Fleet Services Strategic Plan Update - the City of Boise

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