HomeMy WebLinkAboutAgenda Statement 1985/02/05 Item 9 a
COUNCIL AGENDA STATEMENT
Item 9
Meeting Date 2-5-85
ITEM TITLE: Resolution //Z2 Authorizing the establishment of a
Vehicle Equipment R placement Fund and administrative approval
of emergency replacements of vehicles under specified
conditions ,,,r7
SUBMITTED BY: Management Services Director/l (4/5ths Vote: Yes No X )
REVIEWED BY: City Manager
At its May 31 , 1984 budget review session, the City Council considered a
report prepared by the Policy Analysis and Program Evaluation (PAPE) Division
on the City's Vehicle Replacement Needs. The City Manager's transmittal
letter, including a summary of the PAPE report, is provided as Attachment C.
At the May 31 meeting, the City Council : (1 ) approved in concept the
establishment of a partially-funded vehicle replacement fund commencing in FY
1985-86; and (2) directed staff to provide a report to Council , prior to the
FY 1985-86 budget review, on the policies and procedures that will be used in
establishing the vehicle replacement fund.
Administrative policies have been developed and are attached for your review.
Attachment A is the policy for the vehicle equipment replacement fund, and
Attachment B is the policy for the replacement of vehicles.
RECOMMENDATION: That Council adopt the resolution authorizing the
establishment of a vehicle replacement fund and administrative approval of
emergency replacements of vehicles under specified conditions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
As summarized in Attachment C, the May 1984 PAPE report identified a number of
factors which suggested that the City had not maintained a reasonable
replacement schedule for its fleet. These factors included the following:
. The number of vehicles replaced during fiscal years 1981-82, 1982-83,
and 1983-84 was minimal. Based on the number of vehicles replaced
during those three fiscal years, the City was on the equivalent of a
31-year replacement cycle, excluding Police pursuit sedans.
. Maintenance costs for the City's fleet were found to be significantly
higher than four other municipal fleets with more reasonable
replacement schedules.
. The age of most of the equipment within the City's fleet exceeded
replacement guidelines utilized by other selected agencies.
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Page 2, Item 9
Meeting Date 2-5-85
To help correct this problem, staff recommended and the City Council approved
the replacement of 26 vehicles in FY 1984-85, or 11% of the fleet, at a
budgeted cost of $368,320. Furthermore, Council approved in concept the
establishment of a partially-funded vehicle replacement fund commencing in FY
1985-86. While the implementation of the recommended equipment replacement
program will increase the cost of vehicle replacements above previous levels,
it will also enable the City to accrue a number of benefits:
. A fire captain's position is being eliminated, after the incumbent
retired, by transferring most of the responsibility for maintaining
fire apparatus from the Fire Department to the Equipment Maintenance
Division.
. The fleet can be reduced by about 11%. Departmental management
indicated the fleet could be reduced if a more balanced equipment
replacement program was developed. Such a program will enable the
elimination of 24-28 vehicles, generating capital outlay avoidance of
up to $508,000.
. Maintenance costs per vehicle should be reduced over the long run.
The maintenance costs per vehicle for this City significantly
exceeded those of four other cities surveyed which had more balanced
replacement programs. If this City's maintenance costs per vehicle
approach the average of these other four cities, the annual cost for
the City of Chula Vista could be potentially $130,000 lower.
. The reliability of the City's fleet should be increased. Although
accurate data has not previously been available for down time, a
balanced replacement program should reduce down time of vehicles and
therefore increase service levels and productivity.
In consultation with the Departments of Finance and Public Works, PAPE staff
has developed the attached policies and procedures for implementation of the
vehicle equipment replacement fund in FY 1985-86. The key policies are
detailed below.
. The vehicle replacement fund will be a partially funded replacement
fund designed to minimize the cash balance of the fund.
. Replacement charges for vehicles will be billed to each department
based on the number and type of vehicles assigned to each department
and the replacement schedule for the vehicles.
. The replacement charges will be updated annually by the Department of
Finance for inflationary increases in the price of the vehicles.
Investment income generated by monies within the fund and income
generated by salvaging surplus vehicular equipment will be credited
to the fund.
. The Department of Finance will generate financial reports regarding
the status of the vehicle replacement fund.
Page 3, Item 9
Meeting Date 2-5-85
. Any year-ending fund balance will be carried over into the next
fiscal year instead of reverting to the general fund.
. All vehicles to be normally replaced by the City each fiscal year
will be budgeted centrally within the vehicle equipment replacement
fund, and that budget will be reviewed by the City Council during the
regular budget review sessions.
. The Equipment Maintenance Superintendent will prepare the
recommendations to the City Manager for vehicle replacements, and
solicit feedback from operating departments regarding the proposed
replacements.
. The vehicle equipment replacement fund will be utilized to fund the
replacement of vehicles within the fleet, not the addition of
vehicles to the fleet resulting from the addition of staff, addition
of work programs, etc. Such additional vehicles would be budgeted
separately in the requesting department's budget.
. The vehicle equipment replacement fund has been developed to allow
the emergency replacement of equipment not specifically budgeted.
Within the fund, an emergency replacement account would be
established. This account would contain no more than 10% of the
replacement charges credited to the fund annually. These monies
would be used to replace vehicles which are damaged beyond economical
repair after the vehicle replacement budget has been prepared.
. The emergency replacement of a vehicle not specifically budgeted for
replacement will normally be considered only if:
- Funds are available within the emergency replacement
account of the vehicle equipment replacement fund; and
- Special factors necessitate the prompt and timely
replacement of the vehicle, rather than waiting until the
next fiscal year, such as equipment damaged beyond economic
repair.
Such requests may be approved administratively by the City Manager,
upon the recommendation of the Director of Public Works/City Engineer
and the Equipment Maintenance Superintendent, if in addition to the
two criteria listed above one of the following two conditions is also
met:
- The estimated cost of repairs needed by the vehicle would
exceed the estimated resale value of the vehicle after it
had been repaired; or
- If the needed repairs were performed, the life-to-date
maintenance cost of the vehicle would exceed two-thirds of
0C)-•`\ its current replacement cost.
If neither of these two latter conditions is met, replacement of a
vehicle not specifically budgeted for replacement will require City
Council approval .
Page 4, Item 9
Meeting Date 2-5-85
An example of the need for the emergency replacement account, albeit an
extreme case, is presented with the scooter assigned to the Parking
Enforcement Officer. A total of $3,700 was spent in repairing and
maintaining the vehicle in 1983; yet the vehicle has a replacement value of
only $7,600. Major repairs were made to the engine, steering, brakes,
suspension, fuel system, and ignition system. The average cost for each
repair order was $280. The vehicle was in the shop for repair an average of
once a month. The vehicle became unsafe and has been parked pending its
replacement, which was authorized by the City Council in the FY 1984-85
budget. However, with an emergency replacement account, the Equipment
Maintenance Superintendent could have made a repair/replace analysis and
replaced the vehicle sooner and avoided much of these expensive repairs.
As indicated above, the procedures for the emergency replacement of vehicles
have been written to allow administrative approval for the replacement of
equipment not specifically budgeted if specified criteria are met. These
procedures are intended to improve the City's management of its fleet by
streamlining the repair/replace analysis and decision-making process. The
City Council would approve the funding level of the emergency replacement
account within the equipment replacement fund during its annual budget
review. Normal purchasing procedures would be followed unless a waiver is
requested of and approved by the City Council for a specific case. At the
end of each fiscal year, the Directors of Public Works and Finance will
provide a report to the City Council on the status of the Equipment
Replacement Fund, indicating which vehicles were replaced during the fiscal
year.
The policies and procedures are detailed more specifically in the attached
policies.
FISCAL IMPACT: The cost of the vehicle equipment replacement charges in
fiscal year 1985-86 will approximate $390,000.
WPC 0592I
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ATTACHMENT A
POLICY FOR VEHICLE EQUIPMENT
REPLACEMENT FUND
1 . PURPOSE: To establish the methods and procedures for the Vehicle
Equipment Replacement Fund and vehicle replacement charges.
2. DEFINITIONS:
(1 ) Vehicular equipment includes only mobile, powered equipment within
the inventory maintained by the Equipment Maintenance Division of the
Public Works Department.
(2) The Vehicle Equipment Replacement Fund is an internal service fund
established to provide the funds necessary to replace vehicular
equipment when it is most economical.
(3) Vehicle replacement charges are those annual charges billed to using
departments to fund the eventual replacement of the vehicles assigned
to departments.
(4) The replacement schedule is the anticipated economic life for the
class of equipment expressed in years.
3. RESPONSIBILITIES:
(1 ) The Director of Finance is responsible for developing and updating
the vehicle replacement charges for all classes of vehicular
equipment.
(2) The Director of Finance is responsible for administering the Vehicle
Equipment Replacement Fund to include debiting and crediting monies
to the fund, preparation of financial reports, and the like.
(3) The Equipment Maintenance Superintendent shall be responsible for
developing and updating the replacement schedule for each class of
equipment. The vehicle replacement schedule follows this page.
(4) The Equipment Maintenance Superintendent shall be responsible for
developing and updating the inventory of vehicular equipment
including an inventory of equipment by class, and by assigned
department and budget activity.
(5) The Director of Finance is responsible for informing each department
of the amount of monies it must budget for replacement of its
vehicular equipment.
(6) Each operating department is responsible for budgeting the
replacement charges for the vehicular equipment assigned to the
department.
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EXHIBIT I
VEHICLE REPLACEMENT SCHEDULE
General Vehicles Replacement Schedule
Sedans/Station Wagons 8 years
Sedans: Police Pursuit 2 years
Pickup Trucks
(1/4, 1/2, 3/4 Ton) 7 years
Vans
(Cargo, Passenger) 7 years
Motorcycles: Police
(2 wheel , off-road) 4 years
Scooters 5 years
Sedans: Police Pursuit (reserve) 4 years
Sedans: Police Pursuit (canine) 4 years
Sedans: Police Pursuit (Sergeant) = 4 years
Fire Vehicles
Pumper 20 years
Ladder 25 years
Telesquirt 25 years
Utility Rescue Truck 10 years
Heavy Trucks/Equipment
Aerial Tower Truck 10 years
Asphalt Distributor Truck 20 years
Bucket Loader 10 years
Bus 10 years
Chipper 10 years
Compressors
(90, 160, 185cfm) 10 years
Concrete Mixer 10 years
Dump Truck
(1-1/2 Yard, 4 - 6 Yard) 10 years
Excavator, Hydraulic 12 years
Flatbed Truck 10 years
Front End Loader 10 years
Generators 20 years
Mowers:
Reel (3-Gang) 6 years
Rotary 8 years
Roller
(Tandem, Rubber Pneumatic) 12 years
Sewer
(Jetter, Rodder) 10 years
Stump Cutter 10 years
Sweeper:
Lawn 10 years
Street 7 years
Tractor
(Backhoe, Turf) 10 years
Traffic Striper 12 years
WPC 0566I `\�a- -2-
4. POLICIES:
(1 ) The Vehicle Equipment Replacement Fund shall be a partially funded
replacement fund designed to minimize the cash balance of the fund.
(2) The replacement charges shall be updated annually by the Director of
Finance by December 1 for upcoming fiscal year budget process. The
charges shall be adjusted annually for inflationary increases in the
price of equipment.
(3) Income generated by salvaging of surplus vehicular equipment shall be
credited to the Vehicle Equipment Replacement Fund as the revenue is
received.
(4) Investment income generated by the monies within the Vehicle
Equipment Replacement Fund shall be credited to the fund as it is
received. Investment income from the fund shall be segregated to
facilitate this crediting.
(5) The annual vehicle replacement charge for each class of vehicular
equipment shall be developed and updated by the Director of Finance
based on the following formula:
Annual = Replacement Cost Less Salvage Value
Replacement Life of the Class of Equipment
Charge
The life of the class of vehicular equipment shall be established by
the replacement schedule. The current replacement cost for each
class of equipment shall be reduced by the estimated salvage value at
the end of its useful life as defined by the replacement schedule.
(6) The Equipment Maintenance Superintendent shall provide the Director
of Finance an updated inventory of vehicular equipment by November 1
of each year. This inventory shall include the vehicle number,
class, budget activity, department to which the vehicle is assigned,
and a class description for the vehicle.
(7) The Director of Finance shall inform each operating department
regarding the figure the department will need to budget for
replacement charges by December 15 of each year. This shall include
the number of vehicles by class assigned to each department, the
annual replacement charges per vehicle within each class, and the
total charge both per class of vehicle and for all classes of
vehicles by budget activity.
(8) Each operating department shall budget the amount of monies indicated
by the Finance Department for replacement charges within object
account 5270.
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(9) The Finance Department shall credit to the Vehicle Equipment
Replacement Fund the replacement charges budgeted in each operating
department's object account 5270. These charges shall be credited to
Account 705-7050-4083 during the first month of each fiscal year.
(10) All replacement vehicles to be purchased by the City each fiscal year
shall be budgeted in Account 705-7050-5565.
(11 ) The Finance Department shall generate reports regarding the status of
the fund to include:
• Expenditures
• Revenues
• Balance Sheet
. A replacement charge status report which would indicate the
replacement cost for each vehicle, salvage value, replacement
schedule, annual replacement charge, the accumulated amount of
replacement charges for each vehicle and other charges made for
a vehicle (e.g. , accident, etc. ).
These reports will be generated on a monthly basis with the exception
of the replacement charge status report which will be generated on a
quarterly basis.
(12) The number of regular annual replacement charges for a piece of
equipment shall not exceed the number of years of economic life of
the equipment as defined by the replacement schedule. If the vehicle
is to be replaced later than suggested by the replacement schedule,
the department shall be charged less than the regular annual
replacement charge for vehicles assigned to its class; specifically,
25% of the annual replacement charge will be billed to the department
until the vehicle is replaced.
(13) The year-end fund balance for the vehicle equipment replacement fund
shall be carried over to the next fiscal year; the balance shall not
revert to the general fund.
(14) The Vehicle Equipment Replacement Fund shall be utilized to fund the
replacement of vehicles within the fleet, not the addition of
vehicles to the fleet resulting from the addition of staff, addition
of work programs, etc.
(15) Requests for additional vehicular equipment will require supplemental
budget approval and shall be prepared as a Supplemental Budget
Request Form (A-141 ) by operating departments.
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(16) An Emergency Replacement Account shall be established within the
Vehicle Equipment Replacement Fund. Up to 10% of the monies credited
to the fund annually may be budgeted within this account. These
monies shall be used for emergency replacement of vehicles not
specifically budgeted within 705-7050-5565 as part of the regular
budgetary cycle. At the end of the fiscal year, any monies remaining
within this account shall revert to the Vehicle Equipment Replacement
Fund.
(17) The Equipment Maintenance Superintendent may request replacement of
vehicles after the start of the fiscal year not specifically budgeted
within 705-7050-5565. Such requests will normally be considered only
if:
. Funds are available within the Emergency Replacement Account of
the Vehicle Equipment Replacement Fund.
. Special factors necessitate the prompt and timely replacement of
the vehicle, rather than waiting until the next fiscal year,
such as equipment damaged beyond economic repair.
. The request is approved by the Director of Public Works/City
Engineer and the City Manager.
Such requests will be submitted to the City Council for final
approval.
(18) Vehicular equipment not expected to be replaced in the future but
rather eliminated, shall not have replacement charges applied to them.
(19) The Equipment Maintenance Superintendent shall inform the Department
of Finance by November 1 of each year of the vehicles which are not
expected to be replaced in the future.
(20) At the end of each fiscal year, the Directors of Public Works and
Finance will provide a report to the City Council on the status of
the Equipment Replacement Fund. The report will include:
. Revenues accruing to the Fund during the fiscal year (including
replacement charges, salvage income, and investment earnings).
. Expenditures from the Fund.
. Additions or deletions of vehicles in the City's Fleet.
. Vehicles replaced during the fiscal year, highlighting their
age/mileage compared to the replacement schedule.
WPC 0567I
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ATTACHMENT B
•
POLICY FOR REPLACEMENT
OF VEHICLES
1 . PURPOSE: To establish the methods and procedures for the replacement of
vehicles.
2. DEFINITION:
(1 ) Vehicular equipment includes only mobile, powered equipment within
the inventory maintained by the Equipment Maintenance Division of the
Public Works Department.
(2) The replacement schedule is the anticipated economic life for the
class of vehicular equipment.
(3) Vehicle replacement charges are those annual charges billed to using
departments to fund the eventual replacement of the vehicles assigned
to departments.
3. RESPONSIBILITIES:
(1 ) The Equipment Maintenance Superintendent shall be responsible for
developing and updating the replacement schedule for all classes of
vehicular equipment. Replacement schedules are reevaluated
periodically to maintain realistic replacement rates.
(2) The Equipment Maintenance Superintendent is responsible for
recommending vehicle equipment replacements each fiscal year along
with providing supporting information required to substantiate the
recommendations.
(3) Operating departments are responsible for giving feedback to the
Equipment Maintenance Superintendent regarding recommended vehicle
replacements.
(4) Operating departments are responsible for preparing requests for the
addition of equipment to the fleet.
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4. POLICIES:
(1 ) The replacement schedule for each class of vehicular equipment shall
be based upon the anticipated useful life of an average vehicle
within the class when properly maintained and operated.
(2) Vehicular equipment in good condition and with low annual maintenance
costs and low downtime in comparison to other vehicles in its class
may be retained beyond the replacement schedule when circumstances so
justify. On the other hand, special factors may accelerate
replacement if in the best interests of the City. These special
factors could include technological advances, method improvements,
added work program, changed conditions, exceptionally high
maintenance costs in comparison to other vehicles in the same class,
and equipment damaged beyond economic repair (e.g. expensive engine
or transmission overhaul).
(3) In analyzing the need for replacing equipment, the following factors
shall be considered:
. Age/Mileage. An age/mileage vehicle replacement guideline has
been established (see Exhibit I following this page). It is
important to stress, however, that this guideline is merely a
"red flag"; vehicles will not be replaced solely because of
their age or their mileage. These vehicles, rather, will be
subjected to an economic and mechanical performance analysis
when the vehicle reaches the age/mileage guideline.
. Dependability. The fleet overall should experience no more than
5% downtime. Individual vehicles may be higher than this,
however.
Safety. Vehicles should be safe to drive and to operate at a
worksite.
. Image. This criteria will not be widely applied; rather only
selected vehicles assigned to the Mayor, City Manager, or
appropriate department heads would be considered.
▪ Mechanical Performance. The vehicles which meet the age/mileage
"red flag" or the life-to-date maintenance cost "red flag" will
be subjected to a technical evaluation by the Equipment
Maintenance Superintendent. This technical evaluation would
examine the components of the vehicle (i.e. , engine,
transmission, etc. ) to determine whether significant demands are
likely to occur in terms of repairs. If the inspection
indicates the vehicle will prove economical to retain an
additional year, it will be kept in service. The specific form
which would be utilized for this evaluation is presented in
Exhibit II on page 4.
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EXHIBIT I
VEHICLE REPLACEMENT SCHEDULE
General Vehicles Replacement Guideline
Sedans/Station Wagons 8 years or 80,000 miles
Sedans: Police Pursuit 2 years or 80,000 miles
Pickup Trucks
(1/4, 1/2, 3/4 Ton) 7 years or 70,000 miles
Vans
(Cargo, Passenger) 7 years or 70,000 miles
Motorcycles: Police
(2 wheel , off-road) 4 years
Scooters 5 years
Sedans: Police Pursuit (reserve) 4 years or 80,000 miles
Sedans: Police Pursuit (canine) 4 years or 80,000 miles
Sedans: Police Pursuit (Sergeant) 4 years or 80,000 miles
Fire Vehicles
Pumper 20 years
Ladder 25 years
Telesquirt 25 years
Utility Rescue Truck 10 years
Heavy Trucks/Equipment
Aerial Tower Truck 10 years
Asphalt Distributor Truck 20 years
Bucket Loader 10 years
Bus 10 years
Chipper 10 years
Compressors
(90, 160, 185cfm) 10 years
Concrete Mixer 10 years
Dump Truck
(1-1/2 Yard, 4 - 6 Yard) 10 years
Excavator, Hydraulic 12 years
Fl atbed Truck 10 years
Front End Loader 10 years
Generators 20 years
Mowers:
Reel (3-Gang) 6 years
Rotary 8 years
Roller
(Tandem, Rubber Pneumatic) 12 years
Sewer
(letter, Rodder) 10 years
Stump Cutter 10 years
Sweeper:
Lawn 10 years
Street 7 years
Tractor
(Backhoe, Turf) 10 years
Traffic Striper .�� 12 years
WPC 0566I �'\
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Exhibit II
VEHICLE INSPECTION RECORD
VEHICLE DESCRIPTION (1)
Equip. No. Description Year `fake • GVW Date I/S Dept Ass t
Date Insp. Odom/Hr Meter C] Mi Reptd Usage LTD Maint St Stor Loc
Rd Q: Q Hr o c c
COMPONENT DESCRIPTIUN (2)
COMPONENT ASSESSMENT (4) - I
Eng: Diesel Q 8 Q Transmission Aux. Trans. Engine
Gas Q 6 Q Auto - L]
Displ 4 Q Manual Q -
Front Axle Cap Rear Axle Cap Warning Lights
Rot Amber Q Transmission
Strobe Amber Q
Other Q -
Tire Size Front Tire Size Rear W.B. C.A.
Aux. Transmission
Body
Flat Bed Q LxW Sery & Maint Q
Flat Dump Q LxW Pickup L:] PTO
Dump Q CyCap
Tool Boxes I Trailer Hitch Cab Metal
Curbside Frame Q Pin Q Pintel Q
Streetside Frame Q Ball Q
Crossbed PU Q Electric Trailer Brakes Cab Interior/Upholstery
Side :fount PU Q Yes Q No 0
Other Q
PTO Rear Bumper Brakes Paint
Yes Q No Q Step Q Air Q
Face Bar L] Hyd Q Glass
Auxiliary/Other Equipment
Suspension
Cooling System
USAGE/COST DATA (3) - Last 2 Fiscal Years Tires/Front
Reptg Unit Mi L:7 Hr L=7 FY FY
Tires/Rear
Units Reported f
Cost per Unit Body !1
Class Cost per Unit
1
REPLACEMENT DATA (5) Brakes 1
Est Replacement Date
Date Fully Depreciated Additional Comments Reverse Side:
Est Age @ Replacement Time (Periods) Yes n No Q
Depreciation Schedule (Periods)
Est Mi/Hr @ Replacement Time RECOMMENDATION FY SELL Q
KEEP Q
Inspected by: Date:
•
▪ Life-to-Date Maintenance Costs. Total life-to-date maintenance
costs as a percentage of a vehicle's replacement costs should be
utilized as another "red flag." When life-to-date maintenance
costs reach two-thirds of the vehicle's replacement costs, that
vehicle should be subjected to an economic and mechanical
performance analysis.
• Maintenance Costs Over the Past Twelve Months. This would be
another "red flag." Vehicles whose maintenance costs
significantly exceed that of their class for the previous twelve
months should be targeted for a review. This would exclude the
cost of accident repairs.
The criteria should be applied as follows:
• Age/mileage and life-to-date maintenance cost indicators should
be used as "red flags" to indicate which vehicles should be
subjected to replacement analysis.
. If the maintenance costs over the past twelve months were
excessive for a vehicle which was "red flagged," the vehicle
should be targeted for a mechanical performance analysis.
• If mechanical performance analysis indicated a vehicle would be
uneconomical to retain, then the vehicle should be scheduled for
repl acement.
• If a vehicle does not meet the above criteria, but is unsafe to
operate and the condition cannot be corrected at a reasonable
cost, the vehicle should be included for replacement.
• If a vehicle assigned to the Mayor, City Manager, or appropriate
department head does not meet the above criteria but is in such
condition that it could negatively impact the City's image, the
vehicle should be scheduled for replacement.
Other criteria may be applied if relevant. For example, if the
maintenance costs over the past twelve months for a vehicle were
excessive due to an overhaul of a major component (e.g. , engine,
transmission, etc. ), the vehicle should be considered for retention
for at least an additional year to enable the City to recoup its
investment in the overhaul . This vehicle should still be targeted
for a mechanical performance analysis to assure its reliability.
(4) The Equipment Maintenance Superintendent, in recommending whether a
vehicle should be replaced, shall evaluate the following:
• If any existing equipment which could properly serve the purpose
is available for transfer.
• If the need can be met from an equipment pool arrangement.
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. If it would be more economical for the City to rent or lease the
desired equipment than to purchase it.
▪ Whether a different type of equipment would best serve the
desired purpose.
. Whether similar equipment operated by the department is
underutilized and whether more efficient use of existing
equipment could meet the need.
(5) The Equipment Maintenance Superintendent may request the replacement
of vehicles after the start of the fiscal year which were not
approved within the budget. Such requests will normally
considered only if:
. Funds are available within the Emergency Replacement Account of
the Vehicle Equipment Replacement Fund.
. Special factors necessitate the prompt and timely replacement of
the vehicle, rather than waiting until the next fiscal year,
such as equipment damaged beyond economic repair.
. The request is approved by the Director of Public Works/City
Engineer and the City Manager.
Such requests will be submitted to the City Council for final
approval .
4. PROCEDURES:
(1 ) The Supplemental Budget Request Form (A-141 ) shall be utilized to
request replacement or addition of vehicular equipment when such
requests are part of the regular budgetary cycle. A separate form
shall be completed for each replacement request.
(2) The Equipment Maintenance Superintendent is responsible for
completing the Supplemental Budget Request Form to request the
replacement of vehicular equipment.
(3) Operating departments are responsible for completing the Supplemental
Budget Request Form to request the addition of vehicular equipment to
the fleet. These requests shall be submitted to the City Manager's
Office.
(4) The Equipment Maintenance Superintendent, in completing the section
"Impact: Benefits of Funding and Consequences of Not Funding" in the
Supplemental Budget Request Form, shall note the following:
. The year/age of the vehicle and the model type (e.g. , 1971
compact sedan) .
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. The most recent miles/hours on the odometer of the vehicle.
• The miles/hours of use of the vehicle over the previous twelve
months.
. The replacement schedule for the class to which the vehicle is
assigned.
. The average maintenance costs over the previous twelve months
for the same class of vehicles as the vehicle proposed to be
replaced (e.g. , the maintenance costs for compact sedans over
the previous twelve months averaged $1000).
. The maintenance costs over the previous twelve months for the
vehicle proposed to be replaced. The analysis should also
denote whether these expenditures included an overhaul of a
major component (e.g. , engine, transmission, etc. ) and the cost
of the overhaul or were —for collection of small but numerous
repairs.
The average cost per repair order for maintenance and repairs
over the previous twelve months and the number of repair orders.
The life-to-date maintenance costs for the vehicle.
Other factors the Equipment Maintenance Superintendent believes
explain and justify the need or benefit of replacing the vehicle.
(5) Upon completion of the Supplemental Budget Request Form for
replacement of vehicles, the Equipment Maintenance Superintendent
shall submit the form to the City Manager's office for evaluation.
The Equipment Maintenance Superintendent shall also submit a list of
vehicular equipment which meets/exceeds the replacement schedule, but
are not proposed for replacement. The form and the list shall be
submitted to the City Manager's office by the date noted in the
Budget Manual.
The Equipment Maintenance Superintendent, at the same time, shall
also provide a copy of the recommended replacements to the operating
departments to solicit feedback.
(6) The operating departments shall evaluate these recommendations, and
submit recommendations for replacement of other equipment, if any, to
the Equipment Maintenance Superintendent by the date noted in the
Budget Manual.
(7) The Equipment Maintenance Superintendent shall review the feedback of
the operating departments and submit any proposed changes to the City
Manager's office by the date noted in the Budget Manual.
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At the same time, the Equipment Maintenance Superintendent shall
submit a list of vehicles which operating departments requested to be
replaced, but which the Superintendent is not recommending.
(8) To request replacement after the start of the fiscal year for
vehicles not budgeted, the Equipment Maintenance Superintendent shall
prepare a memorandum denoting the special factors which warrant the
replacement of the vehicle. The request must be approved by the
Director of Public Works/City Engineer, the City Manager, and the
City Council .
WPC 05661
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