DEPARTMENT OF PUBLIC WORKS: ACQUISITION AND REPLACEMENT SCHEDULE

3-D
DEPARTMENT OF PUBLIC WORKS:
ACQUISITION AND REPLACEMENT SCHEDULE
Problem Identification:
The replacement of City vehicles is not consistent and results in higher expenses, most notably increased downtime and higher maintenance costs.

Recommended Action:
Develop a long-term vehicle acquisition and replacement schedule for financial planning purposes.

Classification:
Cost Savings, Service Improvement

Functional/Operational Area:
Centralized Fleet Management Entity

Estimated Annual Impact:
A significant reduction of unscheduled maintenance will be achieved if vehicles are cycled out of the fleet at optimal times. A very rough estimate of potential savings is $500,000.

Estimated Implementation Costs:
None

Barriers to Implementation:
A high level of interdepartmental cooperation will be necessary to gather the data necessary to develop a useful acquisition and replacement schedule.

Projected Implementation:
90 – 120 days

Next Steps:
Begin collecting and analyzing relevant vehicle usage data. Given the manual nature of this task, it will require a concerted effort by a small team of people dedicated to this task. An approval process must be established that takes into account the budget cycle. Another key consideration is optimizing the seasonal advantages for buying and selling vehicles.

Analysis:
Although replacement schedules exist for some departments, these schedules are not current, nor are they followed due to fiscal constraints and limited coordination. Once developed, replacement policies should dictate the City’s vehicle budgeting, purchasing, and disposition processes.