PARKES SHIRE COUNCIL PLANT AND VEHICLE REPLACEMENT POLICY

Transcription

1 PARKES SHIRE COUNCIL PLANT AND VEHICLE REPLACEMENT POLICY

2 PARKES SHIRE COUNCIL PLANT & VEHICLE REPLACEMENT POLICY CONTENTS INTRODUCTION...1 PURPOSE...1 POLICY...2 RESPONSIBILITY...3 RELATED DOCUMENTATION...3 PROCEDURE...4 TRAINING...5 REPORTING...5 REFERENCES...5 DOCUMENT VERSION CONTROL Ref No. Created by First Adopted Last Modified Review Period DW Policy Plant and Vehicle Replacement Policy Sharon Ross January 2007 OCM 05/02/2008 Res August 2010 Twelve months

3 INTRODUCTION The Parkes Shire Council Plant and Vehicle Replacement Policy and Procedures have been designed in accordance with the Code of Practice NSW Government Procurement (2005), the Local Government (General) Regulation 2005 and ICAC guidelines "take the con out of contracting". Council owns, controls, manages and maintains an extensive range of plant and vehicles; The range of plant and vehicles include (but are not limited to): Graders, backhoes, loaders, trucks, tractors, mowers, rollers, utilities and sedans. The aim of the Plant and Vehicle Replacement Policy is to: Secure potential or future plant and vehicle requirements of Council to enable it to carry out its functions; To review Plant and Vehicle Replacement Program to ensure appropriate for Council's needs; To manage the assets of the fleet to ensure the asset value is maintained; and To optimise plant and vehicle replacement to ensure value for money whilst maintaining asset value. Sound plant and fleet management is necessary to enable Council to: Provide equipment for services to current and future generations; Provide equipment to enable affordable facilities and services, which are sustainable; and Maintain a modern plant and vehicle fleet. The objective of the Plant and Vehicle Replacement Policy is to: 1. Provide the desired level of service in the most cost effective manner, for Council's present and future needs. 2. Maintain a modern, efficient and safe plant and vehicle fleet. The purpose of the policy is to outline current plant and vehicle replacement practices and what needs to be undertaken within the Parkes Shire Council to maintain plant and vehicle replacement practices. The objective of this policy is to set the broad framework for undertaking plant and vehicle replacement in a structured and co-ordinated manner. PURPOSE The policy aims to ensure all plant and vehicle replacement of Councils are legal, ethical and to Council's best advantage. The outcomes of this policy are: open and effective competition, value for money, ethical behaviour and fair dealing. Open and effective competition: To instil confidence in Councillors and ratepayers and other agencies, about the probity and cost effectiveness of Council's plant and replacement generally; To maximise the prospect of obtaining the most cost effective outcome for Council from suppliers; and Plant & Vehicle Replacement Policy Page 1

4 To ensure that plant and vehicle suppliers wishing to do business with Council are given every opportunity to do so. Value for money: To obtain the best return and performance for the money expended from the viewpoint of total costs of ownership, and whole of life costs. Ethical behaviour and fair dealing: To behave with impartiality, fairness, independence, openness, integrity and professionalism; To advance at all times the interests of Parkes Shire Council; To attain a high level of credibility by performing the purchasing role of plant and vehicle replacement impartially, uninfluenced by receipt or prospect of threats, reprimands or rewards, avoiding conflicts of interest and providing equal opportunity for all offerers; To maintain confidentiality of prices, supplier performance and evaluation criteria; To maintain a high standard of accountability; To develop systems and procedures that ensure a consistent approach to the decision making process for the purchasing of plant and vehicles; and To promote professional plant and vehicle replacement practices. POLICY This policy applies to all Council owned plant and vehicles that Council has direct responsibility for or control over, including (but not limited to): Plant and machinery; Maintenance equipment; and Passenger vehicles Plant and vehicle replacement adopts an approach to develop and maintain plant and equipment to ensure that: Plant and vehicle replacement strategies are driven by defined service levels and performance standards; Financial resources are properly allocated and managed to optimise investment in plant and equipment; and A long-term (life-cycle) approach is taken when determining plant and vehicle operations, maintenance and renewal strategies. That is, a costing system which is concerned with the cost of the life cycle ownership. It includes costs associated with the acquiring, using, caring for and disposing of plant and vehicles including maintenance replacement and disposal, commissioning, training costs and operating costs. Plant & Vehicle Replacement Policy Page 2

5 RESPONSIBILITY To achieve this policy the following key roles and responsibilities are identified: Council - To act as custodians for plant and vehicle assets. - To approve Council's Plant and Vehicle Replacement Program. - To approve the sale and acquisition of large plant and equipment. - To ensure appropriate resources for plant and vehicle replacement activities are made available. - To endorse the Plant and Vehicle Replacement Policy. General Manager - To present the Plant and Vehicle Replacement Policy to Council. - To approve the sale and acquisition of light vehicle fleet and equipment. - To ensure that accurate and reliable information is presented to Council for decisionmaking. Directors - To link the Plant and Vehicle Replacement Policy to the Plant and Vehicle Replacement Program using the principles of lifecycle analysis. - To develop Plant and Vehicle Replacement Program, using the principles of lifecycle analysis. - To present information to the Council and General Manager in terms of lifecycle risks and costs. - To provide co-ordination for the implementation of Plant and Vehicle Replacement Policy across Council departments. - To communicate Plant and Vehicle Replacement Policy across Council. - To develop policy. - To develop strategies. - To provide leadership in implementing Plant and Vehicle Replacement Policy. Staff - To implement Plant and Vehicle Replacement Program within the boundaries of individual responsibilities. RELATED DOCUMENTATION See specific Plant and Vehicle Replacement Programs for individual asset groups. Parkes Shire Council Procurement Policy Plant & Vehicle Replacement Policy Page 3

6 PROCEDURE The Plant Procurement Committee (comprising Councillors, Directors and Staff) will provide a common and consistent approach to plant replacement. The annual review process will accommodate the following activities: Review of future plant requirements by staff. Incorporate feedback into a draft program from stakeholders and legislation into plant and vehicle replacement activities undertaken by Council. The draft program to include economic justification, potential alternatives (such as contractors), opportunities to resource share with Alliance Councils, funding arrangements (eg loans, leasing), also analysis of hire rates and depreciation. Review of the draft Plant and Vehicle Replacement Program by the Plant Procurement Committee Reporting Plant and Vehicle Replacement Programs to Council for adoption via the Plant Procurement Committee. Develop and review plant replacement programmes for Plant and Vehicle Replacement Programs annually. Undertake regular reviews and recognise opportunities for plant and vehicle disposal and replacement. Facilitate flexible vehicle selection for vehicles that are nominated within the staff lease back arrangements ensuring suitability for all purposes within budgetary constraints and Council's Vehicle Leaseback Policy. Actively market test passenger vehicles to determine changeover costs trends and adjust replacement strategies accordingly. Reference passenger fleet purchases against ANCAP (safety) and Green Vehicle Guide (environment) ratings. Ensure quality assurance by adopting checklists to ensure that all relevant stakeholders are involved in the total process of plant and vehicle replacement. Ensure Administration Officer and Finance Officer are aware of changes to plant and vehicle fleet for insurance purposes. Considerations should also be given to: Risk Management; Compliance with OHS legislation; Green fleet initiatives such as vehicle emission levels and fuel economy; Roadside service availability; Market trends - optimum changeover, market preferences; and Warranty provisions. This policy is a living document and as such the policy will be revised as the Council s goals and corporate direction change. Plant & Vehicle Replacement Policy Page 4

7 Training Contract Management Communication Skills Tendering Regulations Reporting Procurement of plant items to be reported to Council via the Plant Procurement Committee and then to Council for endorsement. REFERENCES Local Government (General) Regulation 2005 Code of Practice NSW Government Procurement (2005) ICAC guidelines "take the con out of contracting" Local Government Tendering Guidelines (2006) Consultation Draft. Plant & Vehicle Replacement Policy Page 5