The Department of Health Motor Vehicle Fleet Policy
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- Cuthbert Moore
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1 The Department of Health Motor Vehicle Fleet Policy May 2011 Department of Health Government of Western Australia
2 Document Control All efforts are made to ensure that this policy accurately reflects the WA Government Fleet Policy and guidelines 2010 Date Reviewed : April 2011 Date Last Updated : April 2011 Next review date Changes this version Author Sections updated: : November 2011 (subject to State Fleet requirements) : Part Review and Reformat : Facilities and Operations Branch, Health Finance & Contracting Section No Section Title Change Date Changed Environmental factors Removed December Fuel Efficiency Policy NEW December Vehicle Accessories Additions December Short Term Hire Vehicles NEW December Senior Officer Vehicle Additions December 2008 Scheme (SOVS) Appendix 3 Adjusted contribution rate NEW December 2008 for part time officers in the SOVS All Forms Removed December 2008 ALL References to WA Health Changed to Department for December 2008 Health Vehicle Justification NEW 6.3 Record of usage: Log Are to maintained in ALL May 2009 Books vehicles 3 Vehicle Justification NEW July Record of usage: Log Are to be maintained for 3 August 2009 Books months for all GVS and SOVS vehicles. 8 GVS Will no longer be offered August 2009 unless demonstrated business need 8 GVS Definition of Entry level August GVS Amendment & Reformat Policy June 2010 Note: All requests for changes to this policy manual are to be made through the Director, Director General s Division, Department of Health (DOH), on (08) Approved by and effective on the date of the signature below: Name : Kim Snowball Signature : Position: Director General, DOH Date : 2
3 Table of Contents 1 Definitions Introduction Legislative base Exemptions Eligibility to the GVS or SOVS Government Vehicle Scheme (GVS) Senior Officer Vehicle Scheme (SOVS) GVS and SOVS Conditions Records of Usage Conditions of Use Additional Requirements Approved Drivers Passengers Vehicle Use No Smoking Recording Systems Traffic/Parking Infringements Security Insurance In the Event of Loss or Accident Home Garaging Most Direct Route Operational Availability Maintenance - Routine and Periodic Parking/Security Strategic Fleet Management Operational Fleet Management...14 APPENDIX 1 WA Government Fleet Steering Committee Framework APPENDIX 2 Strategic Fleet Management Guidelines Step 1 Get the composition right...17 Step 2 Get the utilisation right...17 Step 3 Get the information management right...18 Fringe Benefits Tax...18 Strategic Fleet Management Plan...19 Vehicle Composition...20 Vehicle Selection Factors...20 Vehicle Justification...20 Fuel Efficiency Policy (Environmental factors)...21 Vehicle Safety Policy...22 Duty of Care / Occupational Safety...22 Monitoring and Reporting...22 Vehicle Specification...22 Vehicle Type (Make, Model and Colour)
4 Vehicle Accessories...23 Functional Items...23 Safety Items...23 Standard Items...24 Extra Accessories...24 Exceptions...25 Short Term Hire Vehicles...25 Vehicle Utilisation...25 Penalties...25 Fair Wear and Tear Standards...Error! Bookmark not defined. APPENDIX 3 Operational Fleet Management Guidelines Vehicle Management...28 Registration...28 Insurance...28 Maintenance...28 Pooling...29 Records Management...29 Fleet Management Records...29 Analysis and Reporting / Internal Cost Assignment...29 Internal reporting...29 Reporting to the Fleet Steering Committee...30 Lease Payments...30 Fair Wear and Tear Criteria...30 APPENDIX 4 Ordinary Plate Procedure APPENDIX 5 Adjusted contribution rate for part time officers in the SOVS APPENDIX 6 Senior Officers vehicle scheme (SOVS) - Government Vehicle Scheme (GVS) - Application to Participate
5 1 Definitions Department of Health (DOH) Director General (DG) DG / CE AHS AHS RSD These policy and guidelines refers to all parts of the WA Health (RSD & AHS). This refers to the Director General or his appointed delegate. Includes both the DG and Chief Executives Area Health Service. This also refers to the delegation of authority by these officers to their appointed representative during times when they are absent from their work due to authorised leave. This refers to Area Health Services. This refers to Royal Street Divisions. Best Buys Vehicle Selection List This is a list of vehicles available to DOH developed in line with the Department of Treasury s WA Government Fleet Policy and Guidelines SG Fleet State Fleet Fleet Steering Committee GVS SOVS Government vehicle fleet managers selected by DOH to manage their vehicles from the Common Use Contract arrangement Motor Vehicle Fleet Services (CUA mandatory - expires 31 October 2010). Part of the Department of Treasury and Finance, State Fleet manage the lease arrangement for the Whole of Government vehicle fleet. The WA Government Fleet Steering Committee is a body established to provide the overall fleet policy framework for all Public Sector bodies to monitor agency compliance and address fleet issues. This is referring to the Government Vehicle Scheme. This is referring to the Senior Officers Vehicle Scheme 5
6 2 Introduction The objective of this policy is to provide a framework for improved management of all Western Australia Health passenger and light commercial vehicles. This policy will: Ensure that motor vehicles are selected, acquired, and used in ways that provide the best possible support to DOH operations; Optimise the efficiency and effectiveness of the fleet to achieve both operational and financial benefits. Ensure consistency with the department s strategic direction and accurately reflect the WA Government Fleet Policy and Guidelines DOH is required to comply with the requirements of this policy unless an appropriate exemption has been granted in writing by the WA Government Fleet Steering Committee Framework. 3 Legislative base The Western Australian Government Fleet Policy is to be applied consistently with the requirements of all relevant legislation, policies and contractual arrangements as determined from time to time. The WA Government Fleet Policy and Guidelines 2010 are developed in line with the relevant legislation, policies and contractual arrangements. In complying with these fleet guidelines, the Department of Health Motor Vehicle Fleet Policy also meets the same legislative base. This includes: 4 Exemptions Public Sector Management Act 1994; Financial Management Act 2006; Treasurer s Instruction 411; Treasurer s Instruction 812; State Supply Commission Policies; Occupational Safety and Health Act 1984 and Road Traffic (Vehicle Standards) Regulations The WA Government Fleet Policy and Guidelines 2010 for vehicle selection will not apply where a vehicle is: Accessed as part of an officer s total employment cost pursuant to a determination of the Salaries and Allowances Tribunal (SAT). Vehicles provided as a SAT entitlement are private vehicles and are not governed by this policy. Provided to non-sat DG / CE AHSs as remuneration in accordance with the Public Sector Management (General) Regulations Accessed by employees under private leasing arrangements such as novated leasing. 6
7 5 Eligibility to the GVS or SOVS 5.1 Government Vehicle Scheme (GVS) GVS will no longer be offered to staff unless there is a demonstrated operational requirement. If an operational requirement has been identified and a business case supported, a vehicle may be made available for after hours private use under the GVS. Participation in the GVS is optional, but is subject to the DG / CE AHS discretion, vehicle availability, officer eligibility, fortnightly financial contribution and compliance with all conditions of the scheme. AHSs and RSD shall not, without the prior agreement of the Department of the Premier and Cabinet, include or infer in new or renewed contracts that a vehicle provided under the GVS represents any part of remuneration. The inclusion of motor vehicles as remuneration or, as an offset against specific or general wage claims, is not approved by Government. GVS vehicles will have ordinary (private) licence plates and be available to WA Health employees for business use during normal business hours. Participation in the GVS, is subject to a demonstrated operational requirement, and must meet the following criteria: Criteria: The following classifications are the WA Health threshold levels for determining the entry point for eligibility to participate in the GVS subject to a staff member having an approved operational requirement: Hospital Salaried Officer General Division Level G-11 Hospital Salaried Officer Professional Division Level P-6 Public Service General Division Level G-8 Public Service Specified Callings Division Level SC-5 Senior Registered Nurse Level SRN-10 Employment Conditions Vehicles will not be available for private use for GVS participants employed on a part time basis, on days that they are not at work. Leave GVS vehicles are predominantly and primarily operational vehicles. Consequently, such vehicles are not available for officers to take on planned leave, unless: DG / CE AHSs are satisfied that the operational purpose for which the agency obtained the vehicle will not be adversely impacted if the officer is allowed to take the vehicle on leave; and Written approval is granted to take a vehicle on leave, providing that the period is limited to no more than a normal period of annual leave. GVS participants who receive approval to take their vehicle on leave will be responsible for fuel costs incurred. Officers must use their fuel cards, in lieu of 7
8 cash, to enable the Fleet Manager to keep track of kilometres travelled, fuel consumption and fuel purchased during leave. Receipts should be kept for all these purchases and the amount repaid to the DOH immediately upon return to work. If a vehicle is approved for use during leave, officers are not to drive interstate, travel great distances intrastate or use the vehicle on rough terrain. Approved Drivers GVS participants will ensure that no other person, with the exception of the officer s nominee, drives the vehicle for private purposes. The nominee shall not be a learner or probationary driver. The approval of the DG / CE AHS must be obtained for the nominee to drive the vehicle. A record of all nominees shall be kept on a Departmental file. 5.2 Senior Officer Vehicle Scheme (SOVS) DOH vehicles may be made available for after hours private use under the SOVS. Participation in the SOVS is optional, but is subject to the DG / CE AHS s discretion, officer eligibility, fortnightly financial contribution and compliance with all conditions of the scheme. DOH shall not, without the prior agreement of the Department of the Premier and Cabinet, include or infer in new or renewed contracts that a vehicle provided under the SOVS represents any part of remuneration. Access to or the provision of a motor vehicle is not to be used to offset against specific or general wage claims, and should not form part of an employment contract. SOVS vehicles will have ordinary (private) licence plates and be available to WA Health employees for business use during normal business hours. Participation in the SOVS is subject to the following criteria: Criteria: The following classifications are the WA Health threshold levels for determining the entry point for eligibility to participate in the SOVS; Hospital Salaried Officer General Division Level G-12 Hospital Salaried Officer Professional Division Level P-7 Public Service General Division Level G-9 Public Service Specified Callings Division Level SC-6 Employment Conditions All officers who are permanent or fixed term contract SES officers (as outlined above) are eligible to access the SOVS. Leave At the discretion of the DG / CE AHS, SOVS participants may have the option of using their SOVS vehicle during periods of paid leave for up to 12 months. If this option is taken, the replacement officer will have access to the SOVS subject to vehicle availability only. Additional vehicles will not be leased for this period. Officers should exercise due restraint in the use of vehicles and may not drive interstate, travel great distances intrastate or use the vehicle on rough terrain. 8
9 Approved Drivers SOVS participants may permit other persons (except learner and probationary) to drive the vehicle for private purposes. 5.3 GVS and SOVS Conditions There are conditions by which officers must abide to be eligible for the GVS or SOVS. DG / CE AHS Discretion Based on budgetary constraints, whether the GVS can be made available, and on what basis vehicles will be allocated, will be determined at the discretion of the DG / CE AHS. The SOVS may be made available to officers acting in a position where an SOVS opportunity exists, at the DG / CE AHS s discretion. The SOVS may be made available to eligible officers employed on a part time basis, who are working 0.5 FTE or greater, subject to DG / CE AHS s discretion and subject to payment of an adjusted contribution rate. Vehicle Availability DOH s fleet size will be based on budget and operational needs. AHSs are required to document justification for each vehicle in their fleet based on genuine operational requirements for GVS vehicles. Vehicles may be retained or acquired to allow SES or equivalent officers to participate in the SOVS. Vehicle Selection Vehicles must be selected from the Best Buys Vehicle Selection List. Accessories Agencies will fund the cost of optional and/or safety equipment and accessories required for operational reasons. (Refer to Vehicle Accessories). SOVS participants may fit a tow bar for private use, at no personal cost, subject to the DG / CE AHS s approval. Alternatively, they may choose other accessories (e.g. child restraints), to the value of a tow bar for the specific make and model of the vehicle. The value of any such accessories must include the cost of installation. These items will be disposed of with the vehicle. Operational Use GVS participants will ensure that the vehicle is available during business hours on a daily basis and accepts that this availability takes precedence over private use. SOVS. participants will ensure that the vehicle is available for operational use during business hours, except when approved by the DG / CE AHS, for periods of paid leave. 9
10 Contribution Participation in the GVS or SOVS is subject to payment of a fortnightly contribution by the participating officer to the officer s health service. Contribution rates are available on the Best Buys Vehicle Selection List and are reviewed by the Fleet Steering Committee each year and adjusted in line with the Consumer Price Index (Transport) for Perth. These are post-tax deductions. There is no remuneration value attached to SOVS participation and, as such, there will be no addition to an officer s salary should the officer choose not to participate in the SOVS or choose to access a less expensive vehicle. Reimbursement of Contribution GVS and SOVS participants are entitled to reimbursement of any contributions for times when the officer is not accessing the vehicle, e.g. during leave or when vehicle is required for operational use. Compliance with Conditions GVS and SOVS participants must agree to the terms of this scheme, sign the application form and comply with the Conditions of Use for government vehicles. Suspension from the GVS or SOVS The right to participate in these schemes may be suspended in respect of any officer or nominee, at the discretion of the DG / CE AHS, if the officer or nominee: Is convicted of a serious driving offence; Is judged to have incurred excessive insurance claims; Has not maintained the vehicle in a suitable manner; or Has breached any of the agreed conditions. Termination from the GVS or SOVS The DG / CE AHS has the right to terminate the private use of a GVS vehicle if it is no longer required for operational purposes or if the officer is no longer eligible for the GVS scheme under the terms and conditions of this policy. 6 Records of Usage Participation in the GVS or SOVS is optional. Officers may elect to terminate these arrangements themselves. DOH shall maintain records of vehicle usage in order that: The extent of operational and private use can be measured and to calculate fringe benefits tax liability for all DOH vehicles (log books); and The person responsible for the vehicle when an infringement, damage or loss occurs for all vehicles can be identified (booking-out system). Continuous logbooks are required to be completed at all times for all governmentplated vehicles. For all SOVS or GVS (private-plated) vehicles, logbooks must be maintained for three (3) consecutive months every three years, or when the driving pattern has altered (e.g. change of residence, work address etc.), and must measure both operational and commuting usage. Although not mandatory for SOVS or GVS the regular maintenance of 10
11 a logbook is recommended as this will allow the more cost effective operational method of calculating FBT liability to be used. When other officers utilise these vehicles for operational purposes they must record that usage in the logbook. A booking-out system must be maintained for all operational use of vehicles so that infringements and/or insurance matters can be directed to the person responsible for the vehicle at the relevant time. 7 Conditions of Use Use of a Government vehicle is subject to a range of conditions. These conditions may differ depending on the type of usage designated for a particular vehicle or officer/driver. Officers should familiarise themselves with these conditions. Any person responsible for, or in control of, a DOH vehicle shall take due care for the condition and security of the vehicle and shall comply with this policy and all relevant legislation, traffic laws, regulations and by-laws. 7.1 Additional Requirements Drivers shall comply with any specific requirements stipulated by their agency and contained in the Policy or Guidelines. The following conditions must be observed by all officers/drivers using a DOH vehicle unless otherwise approved by the DG / CE AHS. 7.2 Approved Drivers Only authorised personnel holding an appropriate and current driver s licence are permitted to drive a DOH vehicle. Probationary drivers are permitted to drive DOH vehicles for business purposes only. 7.3 Passengers Family members, friends or other persons not associated with official DOH business must not be carried in DOH vehicles, except where allowed under the SOVS and GVS or where approved by the DG / CE AHS. 7.4 Vehicle Use Vehicles are only to be used for official DOH business or in other such circumstances that have been approved by the DG / CE AHS in accordance with this policy. Drivers are to ensure that the passenger and load limits legally permitted in the vehicle are not exceeded at any time. 7.5 No Smoking Smoking is not permitted in any DOH vehicle at any time, by any person. 7.6 Recording Systems Drivers shall comply with policy with respect to the completion and maintenance of Records of Usage. 11
12 7.7 Traffic/Parking Infringements Drivers of vehicles are personally responsible for the payment of any fines incurred for Infringements. 7.8 Security Vehicles must be: Parked in a safe and secure place at all times. Properly secured when unoccupied (i.e. keys removed, doors locked and security systems activated). Confidential material and expensive equipment must not be left in unattended vehicles. 7.9 Insurance Losses or damage to any personal property carried or kept in a DOH vehicle shall remain the responsibility of the officer to whom the vehicle is assigned at that time the property was placed in the vehicle, unless such property is used in connection with official business In the Event of Loss or Accident Drivers shall comply with all legal and insurance requirements if involved in an accident, including: Obtaining particulars of the other parties involved; Notifying the Police and relevant authorities in accordance with the Road Traffic Act any other relevant laws; and Notifying your internal Fleet Coordinator. Drivers should also immediately report any theft or damage, however slight, to the relevant DOH Fleet Manager/Coordinator with a view to repairs being undertaken at the earliest possible opportunity. Where Departmental vehicles are involved in an accident and damage has occurred to the extent that the vehicle is rendered unsafe by the driver or emergency services, the vehicles must be transported to a place of repair. Managers should give consideration to the appropriateness of referring any reports of accidents to relevant Occupational Health and Safety bodies depending on the nature of the accident Driver Safety Where staff are required to travel in regional and remote areas and for extended trips, the relevant health service shall provide appropriate Driver Safety Training according to the work conditions. Driver Safety Travel Plans are be developed for staff undertaking extended trips and trips over difficult country conditions. 12
13 7.12 Home Garaging DOH vehicles not being utilised under the SOVS or GVS may be home-garaged where the DG / CE AHS is satisfied that this is justified on operational or asset management grounds. Home garaging is subject to specific conditions. The DG / CE AHS may allow officers to home garage DOH vehicles, on a commute only basis, not being utilised under the SOVS or GVS, only where it can be demonstrated that: Home garaging the vehicle is more secure than leaving the vehicle on the Department s premises; The officer requires the vehicle for operational purposes outside standard business hours or prior to arriving at the office; The benefit of home garaging a vehicle outweighs the FBT liability that home garaging normally attracts. Officers home garaging vehicles are subject to all stipulations specified in Conditions of Use as well as any conditions applied by the DG / CE AHS. Typical conditions are likely to include: Most Direct Route Officers should travel by the normal most direct route between their home and work. Occasional stops and small variations from the normal route are permissible. Regular variations must have the approval of the DG / CE AHS or his/her delegate prior to the variation occurring. Operational Availability Officers will make the vehicle available in the AHS vehicle pool for operational use during normal business hours. Maintenance - Routine and Periodic Assigned Vehicles The officer to whom the vehicle is assigned (including GVS and SOVS participants) is responsible for the vehicle being kept clean and tidy, refuelling it when necessary and regularly checking oil, coolant, tyres, running air conditioning, etc. The officer will ensure that the vehicle is regularly serviced and maintained according to the manufacturer s recommended specifications. Unassigned and Pool Vehicles The DOH Fleet Managers/Coordinators are responsible for ensuring vehicles are maintained as for assigned vehicles above. Parking/Security The officer to whom the vehicle is assigned will make arrangements for off street parking at home, whenever practicable, with security precautions taken at all times. During official use, the officer will park the vehicle at a location convenient to the needs of the AHS (at no cost to the officer) and the vehicle will be available for pool use. 8 Strategic Fleet Management Agencies should generally have a Strategic Fleet Management Plan (refer to Appendix 2 Strategic Fleet Management Guidelines) in order to establish and maintain the most cost effective balance of fleet composition and utilisation to achieve their operational needs. 13
14 9 Operational Fleet Management Operational fleet management should be practiced for all DOH vehicles in order to ensure that the department s fleet is operating at the optimum level. Please refer to Appendix 3 Operational Fleet Management Guidelines. 14
15 APPENDIX 1 WA Government Fleet Steering Committee Framework DG / CE AHS are responsible and accountable for managing their fleets within the government s policy. Public Sector bodies have autonomy in the management of their motor vehicle fleets. With this devolution of responsibility comes the need for Government to monitor progress against key fleet objectives from a whole of government perspective. A structure has been established to ensure agencies have proper authority and access to relevant information and advice to optimise their fleet asset, as well as providing Government with the necessary overview capacity. The Fleet Steering Committee provides the overall fleet policy framework for all Public Sector bodies to work within, to monitor agency compliance and address fleet issues. It comprises of: Under Treasurer (Chair; Department of Treasury and Finance); Director General (Department of Premier and Cabinet); Director General (Department of Consumer and Employment Protection); and Executive Officer (Director of Financial Operations Division; Department of Treasury and Finance). The roles of this Committee are to: Implement the WA Government Fleet Policy, which gives public sector bodies guidance; Ensure the policy is current and aligned with contemporary Government strategies; Refine the policy as new issues arise; advise the Treasurer on Government fleet issues; Establish benchmarks and key performance indicators by which agency fleet performance can be measured; Review fleet performance across Government; Establish the mechanism for adjusting contribution rates for the GVS; Develop the conditions for vehicle use by officers under the GVS; Adjudicate special applications or exemptions; and Advise agencies on matters relating to the policy. The diagram overleaf provides a visual representation of the WA Government Fleet framework. 15
16 WA Government Fleet Framework CABINET TREASURER FLEET STEERING COMMITTEE FLEET POLICY Advice and Contract Management (Department of Treasury and Finance / State Fleet) FINANCING and LEASING (Department of Treasury and Finance / State Fleet) PUBLIC SECTOR AGENCIES PRIVATE SECTOR Contractors for: Vehicle Acquisition Fleet Management Vehicle Disposal Inspection Services 16
17 APPENDIX 2 Strategic Fleet Management Guidelines This section provides a structured approach to vehicle management and outlines significant considerations to achieve and maintain the most effective balance of vehicle composition and utilisation to meet DOH s operational needs. There are three key steps in DOH s strategic fleet management process: 1. Get the composition right; 2. Get the utilisation right; and 3. Get the information management right. Step 1 Get the composition right The first step is to define the operational needs, and then match the fleet size and mix to those needs. A number of factors need to be considered, these are: Operational requirements What are the current and future operational needs? Are there alternative ways to meet those needs, such as short-term vehicle hire, taxi vouchers, etc? Fleet size Can it be reduced? Can a new or replacement vehicle be justified? Fleet mix Is there an appropriate mix of vehicles to adequately meet varying operational requirements and optimise resale? Is there a structured process that considers all aspects of vehicle specification, additional accessories and the impact these can have on lease rates, operating costs, resale and whole of life cost? Step 2 Get the utilisation right Once the number and mix of vehicles that are required to meet operational requirements have been established, a strategy is required to make the best use of those vehicles to minimise costs. Health services can rationalise their fleet and pooling arrangements by: Maximising use Maximising the use of all vehicles can have significant financial benefits and reduce the size of vehicle pools, and minimising the department s Fringe Benefits Tax (FBT) liability. Offsetting FBT liability Home garaging of Q-plated vehicles shall only occur where: Safe and secure parking on Health business premises is unavailable; or Home garaging is required for operational purposes. 17
18 In both instances, prior written approval must be granted by the DG / CE AHS. Alternately, converting Q-plated vehicles to ordinary (private) plated vehicles, for which employees pay a contribution in return for private use, can also significantly offset (or even eliminate) the FBT liability. The Government Vehicle Scheme (GVS) and Senior Officer Vehicle Scheme (SOVS) both provide an effective mechanism to achieve this. Step 3 Get the information management right To get the best value from their fleet, Fleet Managers / Co-ordinators need to understand their current fleet in order to review its performance and to plan for future fleet needs. To do this, they will need: Current and relevant information about their fleet; and The relevant expertise to make informed decisions about their fleet composition and utilisation. Recording information DOH Fleet Managers / Co-ordinators need to capture relevant information through the use of an asset register, vehicle booking and logbooks, a record of GVS participation, vehicle justification and FBT paid. These records must be maintained either on a corporate register or on an official departmental file and listed on the departmental record system, for audit purposes. Getting the right advice Support and advice to assist DOH to strategically manage its fleet are available through the SG Fleet and/or State Fleet Planning and reviewing Fringe Benefits Tax Since operational needs and fleet arrangements change over time, DOH Fleet Managers / Co-ordinators need to review their fleet requirements continually and carefully plan for their future needs. The Fleet Steering Committee will periodically request information about DOH s plans and assess compliance with the Government policy through audits and surveys. A fringe benefit is a 'payment' to an employee, but in a different form to salary or wages. According to the fringe benefits tax (FBT) legislation, a fringe benefit is a benefit provided in respect of employment. This effectively means a benefit provided to somebody because they are an employee, such as when the employer allows an employee to use a work car for private purposes. FBT applies when there is either private or commuting use. Maximising the kilometres travelled per vehicle can substantially reduce the affect of FBT. Health services should manage the vehicle use across the fleet so that the average kilometres per vehicle exceed the FBT threshold points of: 18
19 15,000; 25,000; or 40,000 kilometres per year If vehicles are consistently registering low kilometres travelled, or below the FBT threshold points, action must be taken to manage this such as reassigning these vehicles to other business areas where vehicles are travelling in excess of the required kilometres. Strategic Fleet Management Plan AHSs shall have a Strategic Fleet Management Plan in order to achieve and maintain the most effective balance of vehicle composition and utilisation to meet their operational needs. Developing a Strategic Fleet Management Plan will allow AHSs to: Define the operational needs for its fleet; Regularly assess their existing fleet composition and see how well it matches those requirements; Consider and implement where applicable, mechanisms to modify their fleet to better meet those needs; and Monitor and review performance and effectiveness of the fleet in line with changing operational requirements. A Strategic Fleet Management Plan allows AHSs to set targets and monitor their fleet s performance. The plan should demonstrate progress in: Analysing operational vehicle use; Minimising whole of vehicle life costs; Maximising pooling arrangements; and Rationalising fleet size. The following key indicators should be included in a Strategic Fleet Management Plan: Key Indicators Analyse Operational Vehicle Use Minimise Whole of Life Vehicle Costs Maximise vehicle Pooling Rationalise Fleet Size Composition Sources and types of vehicle Utilisation Categories and extent of vehicle usage Vehicle pooling Information Management Conversion to ordinary (private) plates Log books Analysis and reporting Average FBT paid per vehicle Primary key indicator Secondary key indicator 19
20 Vehicle Composition Vehicle Selection Factors It is a State Fleet policy directive that: All DOH vehicles are to be leased through State Fleet, except where prior approval has been obtained from State Fleet to enter into an alternative arrangement. It is a DOH policy directive that: All new or replacement vehicles are only to be selected from the Best Buys Vehicle Selection List ; All new vehicles required to service operational needs, whether additional or replacement shall comply with the CO 2 Emission Policy; That all requests for additional or replacement vehicles are submitted with a business case to DG / CE AHS for approval. All vehicles will have an Australian New Car Assessment Program (ANCAP) rating of 5 or greater; Where conditions or business needs require a larger capacity vehicle, requests must be supported by a business case and have the approval of the DG / CE AHS; and Where approval has been granted by the DG / CE AHS for a health service to acquire a six cylinder or commercial (4WD) vehicle, the selection shall be restricted to those six cylinder and 4WDs listed in the Best Buys Vehicle Selection List. Vehicles may be added to or removed from the Best Buys Vehicle Selection List periodically, based on DOH s strategic fleet requirements. Vehicle Justification Operational requirements shall be the primary consideration in the acquisition of additional or replacement vehicles. The provision of vehicles for commuting or the GVS is not a priority. DG / CE AHSs will determine their fleet size based on availability of funds and operational requirements. Vehicles made available to SES members under the Senior Officers Vehicle Scheme (SOVS) are considered operational vehicles for the purpose of this policy. Adequacy of vehicle numbers is reflected in usage; each vehicle should have a reasonable operational usage rate. Vehicles with low operational usage may not be required or may be deployed more effectively. Replacement of existing operational vehicles is not automatic. When a vehicle is due for replacement, a review of the operational needs for which that vehicle is to be used must be conducted, taking into account environmental, operational and financial factors. All requests for additional and replacement vehicles must have the approval of the Director General. Requests must be supported by a business case and be submitted to the AHS Fleet Manager / Co-ordinator for advice and then the DG / CE AHS for approval and forwarding to the Director General for final approval. 20
21 Fuel Efficiency Policy (Environmental factors) This new requirement within the policy is to ensure ongoing improvements in fuel efficiency; the four cylinder requirement has been replaced with a specified emission target which is expressed in grams of CO 2 per kilometre (g/km). The Australian Greenhouse Office; "National Greenhouse and Energy Reporting System s measurement techniques of CO 2 emissions will be used to calculate the g/km emissions. The g/km measure will be applicable regardless of fuel type and takes account of the different emission characteristics of petrol, LPG and diesel. The policy focuses on fuelefficiency and will be indifferent to the vehicle technology used to achieve it. Slightly different benchmark caps will apply for different types of vehicles and will be based on the fuel consumption ratings that manufacturers provide for their vehicles. The following CO 2 emission (g/km) benchmark caps will apply for all vehicles ordered from 1st October Passenger Vehicles Passenger vehicles with CO 2 emissions rating not exceeding 205 g/km may be selected. These caps will be reduced by 10g/km each year for the next two years. Sports Utility Vehicles (SUVs) Agencies are required to select SUV vehicles with a CO 2 emission rating not exceeding 215 g/km. These caps will be reduced by 10g/km each year for the next two years. Light Commercial Vehicles Light Commercial vehicles have no specific benchmark cap due to the many different categories of vehicles. However agencies should consider an appropriately fuel-efficient vehicle, subject to Fit for Purpose, Safety and Whole-Of-Life-Cost factors. LPG Vehicles Where a vehicle with a CO 2 emission rating above the benchmark cap is required, agencies should seriously consider LPG powered models. LPG models may offer a cost effective, low emission alternative. Exception Where there is a need for a vehicle with a higher CO 2 emission rating than that listed in the categories above, this can only be selected where there is a clear operational need for such a vehicle and is supported by a business case that has the approval of the DG / CE AHS. 21
22 Vehicle Safety Policy Duty of Care / Occupational Safety Agencies have a duty of care to provide a safe workplace. Standards for vehicle specification shall take into account DOH s duty of care under the Occupational Safety and Health Act 1984 for the safety and security of vehicle occupants. Fleet vehicles are considered an extension of the workplace and therefore should be as safe as is reasonable and practical. This policy promotes and supports selecting vehicles with enhanced safety characteristics. More detail about safety considerations is provided in Vehicle Specification below. Subject to fit-for-purpose requirements and other factors outlined above, this policy promotes and supports Safety equipment in vehicles form part of the ANCAP rating and this rating is listed in the Best Buys Vehicle Selection List. Subject to fit-for-purpose requirements and other factors outlined in this policy, this policy promotes and supports: Restrictions on the use of dark window tinting, as this reduces driver visibility; The installation of ABS Anti-skid Braking System; Seatbelt reminder systems; The installation of optional air bags; The consideration to safety aspects of vehicle colour in relation to the vehicle s working environment; Provision of appropriate vehicles for driving in remote areas; and; Vehicles fit for purpose. Monitoring and Reporting DOH is required to report periodically to the Fleet Steering Committee on the application of the WA Government Fleet Policy and Guidelines The information provided will include information where: Exceptions to the policy have been applied, The number of vehicles involved; and Details of the business case, together with data on the extent to which the make up of DOH s fleet has changed in light of this policy. Consequently, it is imperative that this monitoring and reporting information is captured by the Fleet Managers / Co-ordinators with regard to their existing fleet. Vehicle Specification Each AHS should establish internal standards for the specification (type, accessories, safety) of vehicles. These standards shall be consistent with WA Government Fleet Policy and Guidelines 2010, and should take into account the operational requirements of the vehicle, occupant safety and the whole of life cost to the agency. Vehicle Type (Make, Model and Colour) DG / CE AHSs are required to determine (in consultation with their Fleet Manager / Coordinator) the appropriate fleet mix and will select both Q-plated and ordinary (private) 22
23 plated vehicles based on operational needs, whole of life costs and overall value for money. The following should be considered: The Government fleet benefits from its diversity of vehicle makes, models and colours. Vehicles should be selected to cater for the range of the DOH s business needs in a balanced way, and where possible, to optimise resale values. Vehicle colours should be restricted to light or non-metallic colours where possible to minimise refurbishment costs. Black vehicles are not permitted for either general pool, GVS or SOVS. The whole of life operating costs including monthly lease charges or the purchase price, running costs and decommissioning / refurbishment costs. Seeking advice from SG Fleet on the selection of the most effective lease term. Restricting the purchase of new and replacement vehicles (including those under the GVS ) to the Department of Health Best Buys Vehicle Selection List, unless a business case justifying the reason(s) for not selecting a vehicle from this list has been approved by the DG. The final choice of vehicle from the Best Buys Vehicle Selection List must be based on the lowest cost option that will meet operational needs. The preference of an officer who will be assigned private use of an ordinary (private) plated vehicle under the GVS may be considered. Private use preferences however, shall be secondary to operational needs and the vehicle selection requirements above as participation in the GVS is a discretionary benefit. Vehicle Accessories DG / CE AHSs have the discretion to approve the fitting of a range of accessories to meet genuine operational requires subject to the fit for purpose listed above, including safety. Additional or optional equipment installed/fitted to government fleet vehicles shall not affect the manufacturers designed operation, change the intended purpose of the vehicle, or increase the potential for injury to pedestrians or vehicle occupants. Such equipment will be fitted to vehicles in a manner that minimises vehicle damage without compromising any compliance with applicable vehicle Australian Design Rules (ADR s). The following accessories may be selected to meet operational requirements: Functional Items Bull bar (airbag compatible; Manufacturer supplies or recommended); Tow bar; Window tinting; Additional spare tyre/s; and Long-range fuel tanks. Safety Items Electronic Stability Control (ESC)*; Daytime running lights; Active head restraints; 23
24 Cargo barriers in wagons etc, manufactured and fitted to comply with Australian standards; Cruise control; First aid kit; Fire extinguishers; Communication equipment; and Winch (airbag compatible). *This is a generic term for systems designed to improve a vehicle s handling individual manufacturers use a range of different marketing names. Standard Items Air conditioning; Automatic/power steering; and Mud flaps. Extra Accessories Accessories that are essentially comfort items are unlikely to receive approval include: Sunroof; and Leather seats. SOVS participants may fit a tow bar for private use, at no personal cost, subject to the DG / CE AHS s approval. Alternatively, they may choose other accessories (e.g. child restraints), to the value of a tow bar for the specific make and model of the vehicle. The value of any such accessories must include the cost of installation. These items will be disposed of with the vehicle. Health services should consider the whole of life costs associated with the addition of accessories, including fitting, removal and vehicle restoration costs, as well as the impact on lease rates. It is important to understand the impact accessories may have on vehicle lease rates. Other than air conditioning, any accessory added to a vehicle is not usually included for the purpose of calculating the vehicle s residual value. As a consequence, the total cost of the accessory has to be amortised or depreciated over the lease period. It is not uncommon for a vehicle with accessories to incur a higher lease rate than a higher value vehicle with the accessories included as standard. Hence, whilst the most basic model is generally recommended when selecting a vehicle, where a health service s operational requirements necessitate inclusion of accessories, a higher specification vehicle that includes the required accessories as standard may represent better value for money. SG Fleet is available to provide advice on this matter. In the case of high value operational accessories, consideration should be given at the vehicle disposal stage to transferring them from one vehicle to another where possible. Accessories should only be added to DOH vehicles to meet genuine operational requirements. 24
25 Exceptions Roo Bar - This accessory will only be available for vehicles required to undertake regular travel to the country. This will be subject to approval of the DG / CE AHS; and SOVS assigned vehicles, where specific SOVS accessories conditions apply. The DG / CE AHSs may determine that certain additional safety features should be specified, (whether they are fitted as standard or as added extras) to meet particular operational requirements. Short Term Hire Vehicles Drivers of hired vehicles should ensure they are familiar with the vehicles guidelines for use and perform a brief visual check for any obvious faults prior to accepting the vehicle and embarking on their trip. All faults should be reported to the Car Hire Agency and, where necessary, be rectified before accepting the vehicle. Vehicle Utilisation It is important that when selecting a new or replacement vehicle, AHSs select the preferred kilometre specification and vehicle lease term that is as close as possible to the expected usage (Refer to Fringe Benefits Tax). All leases will commence and terminate on the 15th day of the month in which the vehicle is either received or decommissioned. DOH s contracted fleet manager SG Fleet is required to recover the vehicle prior to lease expiry and undertake any necessary repairs in order to meet the Fair Wear And Tear Standards. Following this, it will be transported for Auction. Penalties Financial penalties will apply where either the conditions of the Government Fleet policy are not met. Appropriate vehicle management should be applied at all times to avoid incurring such penalties. Early termination Where a lease is terminated prior to the end of the term, the health service will be charged an adjustment equivalent to 85% of the remaining lease payments to the termination of the lease. State Fleet will calculate the adjustment at the termination of the lease and invoice the AHS at this time. Failure to return vehicle at end of lease term It is the responsibility of the Fleet Manager/Coordinator to ensure that the vehicle is available for collection at the end of the lease period or on a date nominated by the Fleet Manager/ Coordinator as part of their strategic fleet management. Where a vehicle lease is not terminated by the end of the lease term the AHS is required to make a further monthly lease payment for each month or part thereof beyond the lease. Where the vehicle is not returned within three months of the end of the lease term, State Fleet is permitted to increase vehicle rental by up to 50%. Overuse adjustment Where a vehicle exceeds its vehicle kilometre specification by more than 5,000 kilometres, the health service will be required to pay State Fleet an overuse adjustment comprising a fixed component of $200 plus a variable component of 25
26 $0.05 per kilometre up to 100,000 kilometres and $0.10 per kilometre above 100,000 kilometres. State Fleet will calculate the overuse adjustment at the termination of the lease and invoice the health service at this time. Regular monitoring of fleet performance should give early notice of the risk of this penalty. Underutilisation Where a vehicle fails to meet its kilometre specification, the AHS will incur an increased FBT liability (Refer to Fringe Benefits Tax) where it evident that a vehicle is being underutilised, the internal fleet coordinator shall endeavour to relocate the vehicle within a high demand area. Health services should consult with SG Fleet in determining their requirements as this will ensure that the cheapest lease term is selected. Late payments Late lease payments will incur penalty charges. Vehicle Return Standard Under the current Fleet Services Contract model, Inspection Services Australia (ISA) have been employed to assess the condition of all State Fleet vehicles returned for disposal. ISA assess each vehicle and make an assessment of whether any repairs are required. The vehicle inspection is provided to the Fleet Manager who repair the items identified by ISA. Unless by prior arrangement with State Fleet, all vehicles must be brought to a minimum roadworthy standard and all scheduled servicing up to date. In addition, ISA may identify any of the following items as requiring attention: 2.1. Body Damage Scratches, scuffs and stone chipping to panels; Paint discolouration on the vehicle exterior (including damage from bird droppings); Dents or other impact damage; Broken or cracked lenses; Roof and gutter damage caused by roof rack; Any patent or visible signs of being involved in an accident Interior, Boot, Carpet and Trim Any tears, holes, rips and cuts to seats, interior trim, carpets or roof lining: Oil, glue, chemicals or other substances which cannot be removed using propriety cleaners; Cigarette burns Windshield and Glass Any cracks, scratches and stone chips such that the vehicle would not pass a roadworthiness test Vehicle Components and Accessories Missing, damaged or broken components Mechanical and General Any damage or potential damage arising from the failure to service and maintain the vehicle in accordance with the manufacturer s recommendations 26
27 or instructions - including tyres and brakes. State Fleet will have the final decision in assessing the return standard. 27
28 APPENDIX 3 Operational Fleet Management Guidelines Vehicle Management Registration All DOH vehicles shall be fitted with Government licence plates (Q-plates) unless they meet one of the following criteria: The vehicle has been approved by the DG / CE AHS for use in the GVS or the SOVS. The Treasurer has granted an exemption, e.g. there is an operational requirement for confidentiality, sensitivity or security reason and there are not enough Government Vehicle Scheme (GVS) vehicles to meet this need. Vehicles meeting any of these criteria may be fitted with ordinary (private) licence plates (Appendix 4 Ordinary Plate Procedure). Health services shall maintain appropriate documentation to support each ordinary (private) plated vehicle being either: A copy of a completed SOVS/GVS - Application to Participate Form approved by the DG / CE AHS; or A letter from the Fleet Steering Committee confirming that the Treasurer s approval has been granted for security, surveillance or confidentiality purposes. Requests for exemption should be directed to the Fleet Steering Committee and must justify the requirement and explain why it cannot be resourced through GVS ordinary (private) plated pool of vehicles. Any vehicles which are not part of the GVS but have been fitted with ordinary (private) plates under an exemption for operational purposes (e.g. security, surveillance) shall not be used for private use unless expressly approved by the DG / CE AHS. Insurance Each AHS shall ensure that adequate insurance cover is in place for all vehicles at all times. In the event of an accident or loss, health services shall comply with the procedures set down by the Insurer and in the Fleet Management Services Contract. Treasurer s Instruction 812 mandates appropriate insurance cover for all Government motor vehicles. Unless exempted by the Treasurer, all health services are required to participate in the Insurance Commission of Western Australia (Risk Cover) process. Health services shall ensure that appropriate procedures are followed in the event of an accident or loss. These procedures shall be in accordance with those specified by the Insurer and, where applicable, in the Fleet Management Services Contract. These procedures provide for the Fleet Manager (SG Fleet) to assess the cost effectiveness of making an insurance claim and to process a claim or make other arrangements. Maintenance All DOH vehicles shall be maintained in a safe, clean and roadworthy condition and consistent with manufacturers warranty requirements. Health services should ensure that all officers responsible for vehicles understand their obligations with respect to routine and periodic maintenance. Vehicles should be kept clean and tidy; refuelled when necessary, oil, coolant and tyres should be checked regularly, air conditioning run regularly, etc. Vehicles should be regularly serviced and 28
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