COUNTY OF GREENVILLE EQUIPMENT MANAGEMENT SYSTEM

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1 COUNTY OF GREENVILLE EQUIPMENT MANAGEMENT SYSTEM I POLICY The equipment management system provides detail and management information about replacement and operation costs for the County s rolling equipment. The system is to be capable of providing detailed information about individual pieces of equipment. This information will assist managers in planning for equipment needs and developing operating budgets. The underlying goals of the system are to: 1. Acquire and assign vehicles based on demonstrated need and direct service delivery benefit to citizens 2. Increase vehicle and equipment effectiveness and efficiency. 3. Ensure that vehicle and equipment needs are matched with available resources. II PURPOSE Within this document, procedures and practices are provided which are intended to guide the use, operation, maintenance, and replacement of rolling equipment. Guidance is provided for: REPLACEMENT Details are provided regarding the mechanics of using, calculating and accounting for reserves for vehicle and equipment replacement. REPAIR AND MAINTENANCE Details are provided regarding the responsibility and procedure for preventive maintenance and repair of the County s fleet. INSURANCE Details are provided for the responsibility and calculation of vehicle insurance. PURCHASING Details are provided for the process for purchasing replacements and deleting replaced vehicles and equipment. III DEFINITIONS A. Equipment Replacement Reserve A reserve account whose purpose is to build an accumulation of funds to be used for lease and/or purchase payments for vehicles/equipment. B. Replacement Schedule A program that lists a replacement date and anticipated cost of replacement for each vehicle in the County fleet. Rev 9/99, pages 1-7 1

2 C. Rolling and Fixed Stock All licensed County vehicles, heavy maintenance equipment, emergency equipment, field maintenance equipment in excess of $5,000 in value, and other specialized equipment, such as E911 system and the communication system. D. Excess Stock Excess rolling stock includes those vehicles and pieces of equipment that are to be disposed of and replaced and those that are no longer necessary to supply the County s services. E. Salvage Value The estimated current value of a vehicle or piece of equipment at the time that it is scheduled to be replaced. F. Equipment Life A predetermined period of time that it is economical for the County to own a particular vehicle prior to replacing that vehicle. G. Auto Repairs, Tires Accounts (Home base Account) The department s accounts used to account for the costs charged to each vehicle during the fiscal year. IV VEHICLE LIFE A. STANDARDS Vehicles and equipment will be scheduled for replacement based on mileage standards and maintenance evaluation. Fleet Management will perform mandatory annual maintenance evaluations of each vehicle (when the vehicle meets the minimum mileage standard, not the minimum useful life standard in the table below.) Vehicle and equipment replacement will generally be based on the maximum mileage standard; however, vehicles and equipment can be replaced sooner due to maintenance evaluation. Vehicle Type Standard Life Miles/Hours Sedans 10 years 100, ,000 miles Pickups 10 years 110, ,000 miles Utility Vehicles 10 years 110, ,000 miles Vans 10 years 110, ,000 miles Patrol Cars 4 years 90, ,000 miles Unmarked Cars 10 years 100, ,000 miles 2

3 Heavy Trucks - Gas 10 years 110, ,000 miles Heavy Trucks - Diesel 10 years 185, ,000 miles Tractor Trucks 10 years 185, ,000 miles Heavy Equipment 8 years 30,000-40,000 hours Ambulance - Gas 4 years 100,000 miles Ambulance - Diesel 8 years * 225, ,000 miles * Remount after 4 Years Life of vehicles and equipment not included in the above list will be based on recommendations of manufacturers and user groups of that type of equipment. In addition, the life will be adjusted based on the operating cost history for the specific vehicle. In any event, vehicles and/or equipment will be replaced at 10 (ten) years unless deemed suitable for use by Fleet Management. B. CHANGES / ADJUSTMENTS The service life may be modified by the General Services Department to take into account use in excess of average. The using department may request this modification. The request should be based on a type or amount of use that is substantially different than the average. V REPLACEMENT SCHEDULE A. REPLACEMENT SCHEDULE User departments will submit a list of plan qualified replacement vehicle/equipment to Fleet Management on or before August 1 each year for evaluation and final determination. The final replacement schedule will be developed once per year by October 1 st by Fleet Management and submitted to the office of General Services and to the using departments. The schedule will form the basis of the following fiscal year replacement budget and a five-year pro-forma budget update. Prior to October 1, Fleet Management will obtain input as to the adequacy and appropriateness of the current replacement schedule through interviews with the using Department. B. EQUIPMENT SPECIFICATION Replacement of vehicles shall conform to the specifications available for comparable vehicles established in the annual state contract process. The State s specifications will be used as standards for establishing vehicle requirements. All vehicles/equipment scheduled for replacement, will be replaced by the same type of vehicle, unless justification for a change of vehicle/equipment is submitted and approved by Fleet Management. Fleet Management may determine that a used vehicle replacement will be suitable for a departments needs, in such cases, those specifications will be utilized, provided that a 25% purchase savings can be realized. 3

4 C. The following classes of vehicles will be used for replacement: Category Use Size /Type Law Enforcement / Public Safety Inmate Transport (Work Release Program and Medical, Court Transports) Patrol Mix - Van Wagon, Full Size (12-15 Passenger) Sedan, Full Size Sedan, Full Size, Pursuit Patrol Intermediate, Pursuit Patrol Unmarked (Investigative) Sedan, Intermediate Crime Scene (Forensics Crime Lab) Truck, Utility, Intermediate (2-wheel drive) Animal Control Litter Control Coroner - Incident Response Emergency Medical Response Emergency Response, Hazmat, Emergency Preparedness Crime Prevention Truck, Pickup, ½ ton Truck / Pickup, Compact Mix - Truck, Utility, Intermediate Sedan, Intermediate Ambulance (Commercial Chassis, Diesel Units) Mix - Truck, Pickup, 3/4 ton Truck, Utility, Full Size (4-wheel drive) Van Truck, Mini Technical uses Property appraisal / Property Truck, Utility, Intermediate Posting (2-wheel drive) Inspections - Codes & Zoning Truck, Utility, Intermediate (2 or 4 wheel drive) Site Construction - Solid Waste Mix - Truck, Utility, Intermediate (4-wheel drive) Truck, Pickup, ½ ton (4-wheel drive) Inspections - Roads Truck, Pickup, ½ - 3/4 ton (2 or 4-wheel drive) Inspections - Engineering, Soil Mix - Truck, Pickup, Compact & Water Truck, Utility, Intermediate Building Maintenance Mix - Van Truck, Mini (Maintenance of facilities, moving Truck, Pickup, ½ ton records, Mail courier services) Van Truck, ½ ton Administrative Administrative users Sedan, Intermediate Upon replacement of a vehicle, equipment type/size and specifications will be assembled by the using department and submitted to Fleet Management for approval. Fleet Management will maintain a specification file for all vehicles and equipment. D. EQUIPMENT PURCHASE All vehicles and equipment will be purchased by the Purchasing Division according to the replacement schedule submitted by Fleet Management. Fleet Management schedules replacement purchases based on the adopted replacement schedule, and will co-sign all purchase order requisitions. 4

5 E. ADDITIONS TO STOCK Additions to the fleet must occur through the operating budget process. Replacing a vehicle and then keeping the vehicle replaced and thereby increases the size of the fleet is not permitted without inclusion of appropriate additional operating and replacement costs in the adopted budget. F. REVIEW OF STOCK Fleet Management will review the utilization of each vehicle/equipment annually. In the event that any vehicle/equipment operate less than 7,500 miles or 300 hours annually, Fleet Management will remove the equipment from the user department and make available for all departments utilization on a rental billing basis. In the event that sufficient mileage/hours can not be maintained annually, as noted above, the vehicle/equipment will be scheduled for deletion from stock. G. DELETIONS FROM STOCK When it is determined by Fleet Management, utilizing the above-referenced equipment replacement standards, that a vehicle and/or piece of equipment is to be replaced, Fleet Management will notify the Office of Management and Budget of its intent to delete the equipment from inventory. Excess stock will be disposed of at the end of the lease term and after the county has exercised its purchase option. Fleet Management will submit to the General Services office a list of all excess stock for disposal, along with an estimated salvage value (as determined by prior year sales). The General Services office will coordinate removal and disposal of excess stock with Fleet Management as necessary, utilizing public and wholesale auctions. VI USES OF REPLACEMENT RESERVE A. REPLACEMENT The purpose of the vehicle and equipment reserve is to provide the funds necessary for replacement of existing vehicles. The replacement costs eligible to be funded include: 1. The cost to purchase the vehicle. (New or used) 2. The cost to mount and/or attach County equipment to the vehicle. 3. The cost of other attachments that are purchased so the vehicle can function as intended. 4. The cost to extend the life of a vehicle at least 25%, as long as such cost is less than 25% of the cost of replacement. 5. The cost of the lease payments for lease/purchasing vehicles. B. VEHICLE UPGRADES/EXTENSION OF VEHICLE LIFE Use of the reserves to make equipment upgrades of existing equipment and/or change the purpose of the vehicle is allowed, as long as the change also extends the life of the vehicle by at least 25%, provided such activities are planned and budgeted. C. EMERGENCIES In special cases, The County Administrator may approve use of reserves to deal with emergencies in accordance with purchasing procedures, regulations and statutes in effect at that time. This situation is most likely to occur in the case of damage to a vehicle. In this case the reserves may be used, in conjunction with insurance funds, to replace the vehicle. D. BORROWING AGAINST FUTURE RESERVES Borrowing against future reserves is prohibited unless expressly authorized by the County Council. 5

6 VII OPERATIONS A. FLEET MANAGEMENT CHARGES Charges will be made for preventive maintenance and repair against each department s auto repairs account for each piece of equipment. The charges will be based on an hourly rate for mechanics. In addition, the actual cost of repair and maintenance parts, plus 15% markup will be charged to the equipment. All sublet repairs will be marked up 10%, with a maximum charge of $ to offset the costs of handling. Shop charges will be reviewed annually and will be in effect for one year beginning each July 1. The charges will be Based on the approved pro-forma budget for that year and will be published on or before January 1 of each year consistent with approved rates used to develop users department budgets. B. FUEL CHARGES Fuel that is actually used and recorded by the fuel dispensing system will be charged. The charge will include the cost of the fuel delivered to the fuel sites plus a fee based on the internal costs to provide the fuel to the using department. The fee will be reviewed and published annually on or before May 1 of each year. C. PREVENTIVE MAINTENANCE SCHEDULES The maintenance schedule will be established by Fleet Management. The schedule will be reviewed and updated biannually. Vehicles will have next service stickers and it shall be the responsibility of the vehicle user to monitor the service date and make an appointment to have the service completed. It is the responsibility of Fleet Management to assure that all vehicles are serviced as scheduled. If the vehicle user does not schedule appropriate preventive maintenance, the using department director will be notified. Upon notification and concurrence of the using department director, Fleet Management may secure the vehicle and complete the required service. Preventive maintenance schedules have been developed for oil changes/lube, brake service/change, cooling system, etc. It is the responsibility of the department directors to ensure that vehicles and equipment are properly maintained by employees. D. REPAIR PROCEDURES Fleet Management will make the decision concerning when and how to repair a vehicle. The cost implications of such repair will be made known to the using department prior to completing the work. Since the using department is responsible for funding the repair, the department may delay such repair. However, such delay may result in removing the vehicle from service by Fleet Management. E. INVENTORY AND CONDITION ASSESSMENT Fleet Management will maintain a sufficient equipment inventory listing. The inventory listing will include such things as make, type, purchase date and price, and using department. Annually, in October, a management report will be furnished to the County Administrator summarizing the condition of the fleet with the recommendations for improvements in Fleet Management. F. USER RESPONSIBILITIES Users are responsible for the following: 1. Scheduling of preventive maintenance. 2. Notification to Fleet Management of vehicle problems. 3. Daily recording of mileage/hours per vehicle/equipment. 6

7 VIII BUDGET INFORMATION A. GENERAL Fleet Management will, following review and concurrence by the General Services office, provide to each department information on which to base the following years replacement contribution and operating expenses. Including but not limited to: 1. Estimated fuel expense. 2. Estimated preventive maintenance and repair expense. 3. Cost of insurance. 4. Annual replacement listing with appropriations necessary to complete purchases. The budget information will be provided, once available, for the following July to June period. The following details the basis for the included information. B. FUEL The fuel cost estimate will be based on the historical (last three Years) equipment usage, charges in use indicated by the using department, and projected annual average price of the fuel. C. OPERATION (PM AND REPAIR) The cost estimate will be based on the historical equipment usage and maintenance cost, changes in use predicted by the using department, and the rates charged by Fleet Management. D. REPLACEMENT The County will designate an annual dollar amount contribution to the Equipment Replacement Reserve account. These funds will be utilized towards the annual lease payments required under the Master Lease Purchase Agreement and/or for purchase of vehicles and equipment. E. INSURANCE The Human Resources Department (Risk Management) will calculate the insurance cost of each vehicle and provide such data to Fleet Management annually. The cost will be reported to the using department by Fleet Management and appropriate costs will be assessed each department during Fleet Management s monthly billing as determined by department fleet size. Risk management and insurers will provide a detailed accounting of accident by cause to Fleet Management annually for evaluation and consultation with department managers. Rev 9/99, pages 1-7 7

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