Sales Proposal for Preventive Maintenance Fleet Service by bvv67943

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									Public Works Department


   Services Summary

Fleet Maintenance Fund

     January, 2011
I.       Executive Summary B Fleet Maintenance Fund
A.       Current Revenues

The primary revenue to this fund is from charges to other work groups for maintenance performed on their
vehicles and equipment. The revenue budget is based on anticipated service requirements, estimated from
history and the current condition of the fleet. The current hourly shop rate is considered competitive with the
private sector.

B.       Revenue Development Ideas

Staff is working to solicit more customers for the City’s garage operations from within the organization and
from other government agencies to maximize the efficiency of staff and garage resources.

                                                10-11            11-12            12-13            13-14
 Current Revenue                                  $740,340         $692,630         $719,960         $740,220
 Revenue Development Ideas                               0                0                0                0


 TOTAL                                            $740,340         $692,630         $719,960         $740,220

C.       Current Services

The City organization provides a variety of services that require the use of vehicles and equipment. From
building inspections to bookmobile operations, street paving to water line repairs, services can not be
provided without a well-maintained, efficient fleet. To ensure this, Public Works operates a garage for
vehicle and equipment maintenance, repair and fuel dispensing.

D.       Enhancements to Current Services

No enhancements are proposed.

                                                10-11            11-12            12-13            13-14
 Personal Services                                $212,060         $237,990         $259,120         $273,220
 Supplies and Services                             483,550          447,580          453,740          460,030
 Special Projects                                   45,800            6,700            6,400            6,400
 Enhancements                                            0                0                0                0


 TOTAL                                            $741,410         $692,270         $719,260         $739,650




Public Works Department Business Plan/Fleet Maintenance Fund                                        Page 2 of 9
II.     Fund Services Summary
The City organization provides services that require the use of vehicles and equipment. From building
inspections to bookmobile operations, street paving to water line repairs, services can not be provided without
a well-maintained, efficient fleet. To ensure this occurs, Public Works operates a garage for vehicle and
equipment maintenance, repair and fueling. Each of these service areas includes a variety of tasks or
activities. Other services offered to the organization are fleet replacement purchasing and assistance with
budgeting vehicle operating costs. Garage activities are guided by the need to provide high-quality services at
a cost that is competitive with private industry. At the same time, the advantages to having an on-site
equipment repair facility need to be taken into consideration when determining competitiveness.

All City vehicles and equipment in the Public Works, Finance, Library and Community Development
departments, and some in the Parks and Recreation Department, are maintained by the City garage. Revenue
comes from an allocation to departments based on service requirements estimated from history and the current
condition of the fleet. Currently, the City’s hourly shop rate is considered competitive with the private sector.




Public Works Department Business Plan/Fleet Maintenance Fund                                          Page 3 of 9
III.     Revenues
A.      Current Revenues
 Operating Charges for Service. This revenue account captures the fleet maintenance service provided to
 the organization. An allocation is charged to the using department based on the estimated annual service
 and repair costs. At the end of the year, the actual service performed on each vehicle is reconciled to the
 estimate and the difference is factored into the next year’s estimate calculation. Any excess annual revenue
 is either returned to the departments or moved to a reserve to fund future garage tool/equipment
 replacement projects.

  Other Charges for Service. Preventative and corrective maintenance is performed on vehicles or equipment
  owned by other government agencies. In addition, charges for extraordinary service required on City fleet
  vehicles due to accidents or unexpected equipment failure is captured in this category.

  Gasoline Sales. Tanks at the City garage facility provide fuel for the City fleet, as well as some other
  government agencies.

  Miscellaneous Revenue. Sources of revenue that don’t fit in the other categories are collected here.

B.       Revenue Projections
                                               10-11            11-12            12-13            13-14
 Operating Charges for Service                   $662,270         $600,230        $622,820         $638,080
 Gasoline Sales                                    28,000           66,450           70,440          74,670
 Other Charges for Service                         49,370           24,950           25,700          26,470
 Miscellaneous Revenue                                 700           1,000            1,000           1,000


 TOTAL                                           $740,340         $692,630        $719,960         $740,220



C.      Revenue Development Ideas
  Fleet Maintenance staff continues to seek additional customers to maximize the efficiency of the staff and
  garage resources.




Public Works Department Business Plan/Fleet Maintenance Fund                                      Page 4 of 9
IV.      Services
A.       Current Services

1.       Statistics
         Infrastructure
              84 vehicles (i.e., passenger cars, pick-ups, and vans)
              87 pieces of equipment (i.e., dump trucks, street sweepers, and backhoes)
         16,000 gallons of fuel storage (two storage tanks)
          5,300 square foot garage facility

         Operating Budget
                                                             2010-11 Budget
                  Public Works     Transportation            $685,570       (2.67 FTE)

                                   Special Projects          $   6,700

         Fund Summary
                2010-11 City Budget Authority
                       Revenues: $692,830                    Expenses: $708,270


2.       Current Activities

     Preventive Maintenance. Preventive maintenance concentrates on activities that will improve reliability
     and prolong the life of vehicles and equipment, such as oil changes, lubes, filter changes, and fluid
     checks. This proves more cost-effective over the life of the equipment than corrective maintenance or
     repair. A combination of a manual and an automated system is used to schedule maintenance based on
     the number of miles or service hours since the last service. Whenever a vehicle or piece of equipment is
     in the garage, a condition assessment is performed to uncover any areas that need attention before they
     fail, to ensure safety. The resources assigned to this activity are sufficient to keep up with the preventive
     maintenance required for the size of the current fleet.

     Corrective Maintenance. When a component or part needs replacing, the equipment is scheduled for
     corrective maintenance. This is a proactive approach to equipment care that recognizes that parts break
     down from wear, but allows the maintenance effort to be managed through the ability to schedule
     resources. Reacting to breakdowns requiring immediate attention is also provided, but it costs more
     because it disrupts scheduled staff work and involves an immediate purchase of replacement parts, often
     without the time to do a thorough competitive process. Staff performs the majority of the component
     replacement required. Repairs that are beyond the scope of current garage diagnostic equipment or tools
     are sent to private repair shops.

     Fuel Dispensing. Two above-ground storage tanks were installed in 1999 to comply with Environmental
     Protection Agency (EPA) and Department of Environmental Quality (DEQ) regulations. These tanks
     feed a fuel dispensing facility that provides regular unleaded gasoline and bio-diesel (B-20) for the City
     fleet. All departments use the fuel facility. A card-lock system on the City fuel facility provides control,
     and records the vehicle and staff member using the system. Fuel consumption data is downloaded
     monthly from the dispensing equipment and the using department is charged for the fuel consumed. For
     the diesel fleet, the City uses B-20 (an 80/20 blend of diesel and vegetable-based fuel). Bio-diesel,
     currently competitively priced with regular diesel, extends the life of the engine and reduces the release of
     harmful toxins into the environment.

Public Works Department Business Plan/Fleet Maintenance Fund                                           Page 5 of 9
     Vehicle Replacement. Each item in the fleet has a projected service life. Funds are set aside over the life
     of the equipment to provide adequate resources to purchase a replacement piece when the service life is
     over. These funds are held in reserves in each operating fund. About 7% of the fleet is replaced each
     year. The Fleet Maintenance staff generates, or assists the using department with, the vehicle
     specifications because they are best able to identify the equipment components necessary to provide the
     service level desired. Public Works also manages the purchasing process for the Library, Finance, and
     Community Development departments.

     Fabrication. Specialized fabrication is done to customize a standard piece of equipment to meet the
     unique needs of providing City services. Fabrication services are also used by other departments for non-
     vehicle needs.

     Support Services. Between Fleet Maintenance and Administration, staff provide fleet maintenance
     program administration, improving the tracking of work, maximizing the service hours billed, and more
     efficiently scheduling preventive maintenance jobs. Other support services provided include assessing
     material inventories, managing fuel systems, providing financial reporting or data to departments and
     administering vehicle replacement bids.

                                               Special Projects

     Special Projects. In the Fleet Maintenance Fund, special projects are used to track the replacement of
     vehicles and the purchase of major equipment or tools for the garage.


3.       Expenditure Projections
                                                 10-11            11-12            12-13            13-14
 Personal Services                                 $212,060         $237,990         $259,120         $273,220
 Supplies and Services                              483,550          447,580          453,740          460,030
 Special Projects                                    45,800            6,700            6,400            6,400


 TOTAL                                             $741,410         $692,270         $719,260         $739,650



         If Program/Service Was Not Performed
         Without the Fleet Maintenance activity, vehicle and equipment services would have to be contracted
         out to the private sector or performed through an intergovernmental agreement with another agency.
         Maintenance tasks would have to continue in some manner because equipment is the backbone of the
         majority of the services provided by the City. Without reliable, dependable vehicles, other service
         delivery would be in jeopardy. The activities of the garage are guided by the need to provide high-
         quality services at a cost that is competitive with private industry.

         Performance Reviewed/Benchmarked/Measured
         Reduce the environmental impact from vehicle and equipment operation by increasing the percentage
         of the fleet using alternative fuels.

         Partnerships
         Benton County
                  Vehicle maintenance and fueling agreement
         City of Philomath Public Works

Public Works Department Business Plan/Fleet Maintenance Fund                                         Page 6 of 9
                 Equipment maintenance
        City of Adair
                 Fuel sales
        Dial-A-Bus
                 Fuel sales

        Stakeholders
        Users of City services
        City maintenance and operations staff
        All City departments
        Benton County
        City of Philomath
        City of Adair
        Dial-A-Bus

        Cost Containment Examples
        Vehicles and equipment are scheduled for regular preventive maintenance service to expand the
        service life and to identify major repair needs at the earliest possible time to reduce costs and avoid
        equipment failure.

        Vehicle fluids and fuel are bought in bulk and an inventory of routine supplies is kept, ensuring the
        most competitive pricing possible.

        Bio-diesel is used to fuel equipment which has less impact on the environment and extends the life of
        the engine.

        New vehicles purchased are more fuel-efficient or hybrid vehicles.

        Re-capped tires are used on City vehicles, where possible.

        Toxic cleaning solvents have been replaced with citrus-based solvent, reducing disposal costs.

        New maintenance tools purchased, such as an oil-dispensing unit, a fuel system de-carbonization
        unit, and a vehicle lift, increase the efficiency and safety of staff, and/or fuel efficiency and vehicle
        performance.


B.      Prior Service Reductions
        Fiscal Year 2003-04
                Staffing. The Service Technician position was eliminated.

        Fiscal Year 2010-11
                Staffing. The half-time Fleet Services Specialist position was eliminated to contribute to the
                expenditure reductions for property-tax supported service areas.


C.      Enhancements to Current Services

1.      Maintain Current Services
        No enhancements are proposed.



Public Works Department Business Plan/Fleet Maintenance Fund                                          Page 7 of 9
2.       Expand Current Services
         No enhancements are proposed.

3.       New Services/Programs
         No enhancements are proposed.
                                               10-11           11-12        12-13        13-14
 Maintain Current Services                             $0              $0           $0           $0

 Expand Current Services                                0               0            0            0
 New Services/Programs                                  0               0            0            0


 TOTAL                                                 $0              $0           $0           $0




Public Works Department Business Plan/Fleet Maintenance Fund                             Page 8 of 9
V.      Other Issues
        Garage building maintenance
        - ceiling height insufficient for some equipment
        - safety issues for the pit area
        - ventilation system in the welding shop needs to be relocated




Public Works Department Business Plan/Fleet Maintenance Fund             Page 9 of 9

								
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