FOR: Economic Development Committee [August 12, 2021]
TO: Honorable Economic Development Committee Members
APPROVAL: Marcus Fuller, City Manager
FROM: Michael Tahan, Interim Public Works Director
Title
Request Economic Development Committee to Review the Proposed Citywide Fleet Assessment.
Body
BACKGROUND:
The Public Works Fleet Maintenance Division is charged with the responsibility of maintaining safe, reliable and clean vehicles and equipment, providing mechanical support in a timely manner, and providing service and products that are safe, efficient, and cost effective. The Fleet consist of 445 assets. This Fleet count is comprised of vehicles, equipment and machinery/ tools, which fall under the maintenance duties of the Fleet Maintenance Division. Of the 445 assets, 136 vehicles are allocated to the Police Department, 42 vehicles are allocated to the Fire Department. The Public Works Fleet Maintenance Division conducted a Citywide Fleet Assessment study, excluding the Fire and Police Departments.
The Fleet Maintenance Division works with individual City departments to purchase vehicles and motorized equipment needed to achieve their mission. The assessment was conducted by meeting with each department between November 2020 and February 2021 to understand their vehicle type needs and number of vehicles needed.
Additionally, staff received feedback from the Economic Development Committee on February 24, 2021 and incorporated the recommendations to complete the assessment being proposed.
ANALYSIS/ DISCUSSION:
Public Works staff has developed a detailed analysis and below is a summary of the Fleet Assessment Report. This report is included for reference as Attachment 1.
Fleet Assessment Summary
1. Proposed Fleet Replacement Summary 1
2. Proposed Fleet Replacement Cost Summary by Department 2
3. Proposed 9-Year Replacement Summary 3
4. Hybrid Vehicle Options 4
5. Replacement Criteria
a. Current Mercury Associates Replacement Criteria vs. Proposed APWA Replacement Criteria 5
b. Current Vehicle Disposition Point Chart 6
6. Departmental Analysis
a. City Administration 7
b. City Clerk’s Office 8
c. Finance (Including Purchasing & ITS) 9
d. Utilities 10
e. Community Development 11
f. Community Services 12
g. Human Resources 13
h. Public Works Administration 14
i. Public Works Engineering 15
j. Public Works Maintenance
i. Streets Maintenance 16
ii. Traffic Safety Maintenance 17
iii. Parks Maintenance 18
iv. Facilities Maintenance 19
v. Fleet Maintenance 20
7. Cost Comparison: 21
a. Enterprise Lease Pricing
b. Dealer Purchase Pricing
The fleet is critical to the operation of the City Departments. The following criteria was identified and incorporated in the Fleet Assessment to positively impact the Fleet Maintenance Division’s replacement process. The recommended criteria are outlined below:
1. Current Replacement Criteria 3- Vehicle Factors
Provided by Mercury Associates, Inc. for the City of Rialto
• Vehicle Age of Service 8-10 years (non-emergency vehicles)
• Vehicle Mileage 100,0000-125,000 Miles
• Vehicle Maintenance Cost reaches or exceeds 80% of Vehicle Value
2. Proposed Criteria Factor Reductions Applied in order to increase resale / surplus value:
New proposed replacement criteria and benchmarks based on APWA standards.
• Decrease vehicle age by (3) three years
• Reduce vehicles usage by (25,000) twenty-five thousand miles
• Reduce accumulated repair cost down to 50% of the original purchase cost
3. Fleet Alternative Fuel Vehicle Comprisal Goal:
Direction was to target 20% percent of the Fleet to alternative fuel.
The current Citywide vehicle Fleet size is 256 vehicles consisting of 21 Hybrid (gas/ electric) vehicles, this is equal to 8.2% of our current Fleet being alternative fuel/ hybrid vehicles.
The current Fleet size, excluding Fire and Police, is 86 vehicles consisting of 7 Hybrid (gas/ electric) vehicles. This represents 8.19% of our current Fleet being alternative fuel/ hybrid vehicles.
Fiscal Year 2022: 26.73% of the Fleet would be a type of Alternative Fuel vehicle. The proposed Fleet Replacement Plan would increase the Fleet size from its current 86 vehicles to 101 vehicles, excluding Fire and Police's Fleet. The Plan consist of adding 60 vehicles and surplusing/ retiring 58 vehicles. 27 of these vehicles are alternative fuel vehicles, 15 Gas/ Electric Hybrid and 9 Full Electric. This results in an increase of 18.54% in Alternative Fuel vehicle usage in the City of Rialto’s fleet.
Under the proposed Fleet Replacement Plan we will exceed the target goal and reach 27% of our current fleet becoming alternative fuel by year 3.
FINANCIAL IMPACT:
The annual lease total cost is $281,859.72 for the Proposed Fleet Replacement program. Budget in the amount of $300,000 will be available pending in Fiscal Year 2021/ 2022 budget. Funding for the additional lease years will be budgeted during the subsequent fiscal years’ budget process.
RECOMMENDATION:
Staff is requesting feedback and recommendation from the EDC as it relates to the Fleet Assessment conducted by Public Works.