Overview Sub-Committee - Place Shaping and Communities 19th July 2010
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1 Agenda Item No 12 Additional report on Vehicle Tracking System Trial Jan Baxenden-Kirk This report is to fulfil the request to provide additional information on the recommendation by officers to purchase a Vehicle Tracking System that fully optimises the provision of management information on the fleet of vehicles operated by the council. Cabinet member(s): Robert Savage Contact Officer, telephone number, and Ward(s) affected: All Jan Baxenden-Kirk jbkirk@s-norfolk.gov.uk 1. Background 1.1 Following the EH&R Overview Sub -Committee meeting on 10 th May 2010 when a report on the Vehicle Tracking System was presented it was requested of the Performance Officer to review the current report and to provide more background information on the request by officers who were seeking to improve the funding for the purchase of a vehicle tracking system and GPS updating. In order to gain member support for the trial being undertaken and for the purchase of a suitable vehicle tracking system and GPS support that will meet the needs of the Council.
2 1.2 In order to follow up the request I have investigated supplier websites, interviewed the officers involved in the project, had discussions with IT, reviewed the contents of the report and approached Kings Lynn Council for their views on tracking systems and its benefits since deployment 15 months ago. 1.3 The project to date has ensured that trials for three different systems will be tested. To date the Enigma system has completed its trial period and currently Road Angel is undergoing testing, this will in turn be followed by a 3 rd system, all of which have been selected from the seven leading companies which had originally been identified. The quoted system costs for 67 vehicles originally ranged from 23,000 to 37,000 with continuous support and real-time (GPS) updating ranging from 10,000-12,500 per annum. The Enigma trial on one vehicle has already provided an invaluable insight into vehicle usage and fuel consumption i.e. reports on excessive idling, breaking, speeding etc. 1.4 The officers involved in carrying out the investigations, negotiations and managing the trial are Rachael Ives (Environmental Service Officer) based at Ketteringham Depot with Kelly Lunness (Operations Manager) the responsible officer for the project, and Alan Quinton (IT Business Development Manager). 1.5 This is also a key project of the Councils Carbon Management Plan to reduce and optimise fuel usage by the fleet. With the aim to achieve a reduction of approximately 1% to 5% in fuel consumption and reducing carbon emissions by 12 to 59 tonnes per annum. On current prices this would equate to 4,400-22,000 in cashable savings per annum. 2. Current Position and Issues 2.1 Approval of 25,000 capital funding has been granted to purchase a Vehicle Tracking system This will allow for the tracking system to be purchased for a total of 67 vehicles and provide the functionality required to improve service delivery and optimise utilisation of the vehicles within the fleet. This includes, GPS location tracking, reports and alerts for speed of vehicle and associated speed limits, lifts for bins and brushes, harsh braking and acceleration, excess idling, ring fenced locations i.e. waste disposal sites, out of hours reporting and stationary alerts. Subsequent to the report submitted to OSC on 10 th May 2010, there have been rigorous negotiations with the suppliers which have ensured that the cost of the system, plus installation to an initial 22 vehicles, with training of both office staff and fitters can be achieved for 25,000, irrespective of
3 supplier. This would enable our fitters to complete the installation to the remaining vehicles and reduce ongoing costs. The allocated capital does not include the annual cost of GPS updating, text alerts, maintenance, upgrades, and ongoing support. This equates to costs of 10,000 per annum. Negotiations have produced a further potential cashable saving to the council of 10,000 over a period of 3 years. By contracting both the purchase of the system and 3 years of GPS updating, text alerts, support etc at the time of placing the order, the total price payable would be 45,000 as opposed to 55,000, ( 25,000 system costs plus 3 years GPS+ at 10,000). The recommendation by the officers involved in the project would be to utilise this further saving on purchasing the total package to reduce ongoing costs to the service by approximately per annum. Future years costs would be met from the savings achieved during this period, the ongoing reduction in fuel usage and optimisation of vehicle management and improved driver behaviour. 2.2 Due to the economic pressures on the current service budget for 2010/11 (the current financial year) there is insufficient funding to meet the annual cost of the GPS updating, text alerts, ongoing support and maintenance costs associated with the purchase of a vehicle tracking system. If subscribed to under a separate contract this would be 10,000 per annum. For future years the service would look to fund the annual costs from savings made. 2.3 A recommendation was submitted to CMT (6 th July 2010),. CMT has considered the report and fully support the proposal and it has been agreed to use 25,000 from capital funding to purchase a vehicle tracking system which will be fitted to a number of vehicles, mainly at Ketteringham. This will allow a number of improvements to be made to service delivery, and also use all the vehicles to the best effect. Savings will be made by reducing fuel costs, better route planning etc. CMT agreed the recommendation in the report to use some of the Invest to Save budget to pay for the revenue costs in the first two years. 3. Proposal and Reasons 3.1 By the end of the trial it is hoped to identify and purchase the most suitable vehicle tracking system to meet the needs of the council. 3.2 To purchase a vehicle tracking system with a view to reducing costs, this would include fuel as well as vehicle operational costs and to improve driver behaviour. To contribute to reducing CO2 emissions and to improve service delivery through management reporting and monitoring.
4 3.3 To implement a fleet tracking solution, in order to actively reduce risk in terms of employees and council assets. 3.4 To reduce the amount of missed bin complaints by have real time reports on the collection service, thus saving on having to send a refuse vehicle back to an unjustified claim. This would save on fuel and officer time investigating complaints. Theft of vehicles is an everyday risk for all, it has a financial impact through loss of earnings and service levels can be impacted It is a legal requirement as part of holding the VOSA licence to monitor driver behaviour, hours worked, speed etc; currently this is monitored manually and is labour intensive to collate. Health and Safety legislation states that employers are obliged to make the workplace safe. It is in the councils interest to keep the assets of the council secure Drivers of fleet vehicles, whether it is a car, van, HGV or street cleansing vehicle often work alone, by utilising the location tracker and stationary alerts the service can ensure they manage their responsibilities and Duty of Care to employees in accordance with the duty of care legislation 3.5 The trial has also involved the councils internal IT resources to ensure system requirements and compatibility on our networks is achievable and will not compromise operational effectiveness. 3.6 To realise the benefits of installing a Fleet Tacking system, this would include: Accurate journey information to improve the efficiency of operations, and eliminate duplication and waste Instant information on routes travelled and exact locations Reports and information on driver monitoring, i.e. excessive braking, acceleration, idling, lifting, etc. Provides information to improve driver behaviour, i.e. poor driving habits such as speeding would be identified and eliminated Improves fleet security, provides reliable vehicle information, i.e. speed, location etc., for accident reports which has the potential to reduce insurance premiums over a period of time Allows for adhoc responses to be dealt with by the nearest vehicle, which would help in reducing costs of service provision Reduces officer time in locating, monitoring and producing reports for example missed bin collections
5 Increases service delivery optimisation and reduces employee dissatisfaction with unequal workloads 3.7 The reports utilised by Rachel from one vehicle on the first completed trial of Enigma have already shown excessive idling, especially first thing in the morning within the confines of the yard. This has already proved beneficial in that staff could be shown the outputs and this forms part of an educational program to create efficiencies not only in staff awareness of costs of fuel usage but also promotes optimisation of the mechanical operation of the vehicle i.e. less wear and tear. 3.8 To provide training for workshop fitters in the installation of the systems to reduce ongoing costs and optimise vehicle management. Operations currently have a number of aging trucks due for replacement as well as the remaining 45 vehicles from the initial installation by the suppliers. 3.9 Additional examples of benefits include: The council has in the past had difficulties in substantiating material facts for Insurance claims, especially in regards to vehicle position, speed and operation functions. Kings Lynn council by utilising their tracking system was able to recently prove that their vehicle was stationery and not moving as claimed. The claimant on seeing this evidence declined to proceed with the claim. Tracking is not intended as a big brother devise for staff but is meant as protection and provides assistance against potential problems, i.e. lone workers vehicle not moving from location for an excessive time on site etc., and will also validate overtime claims and hours worked, will also provide evidence for claims of missed bins Will provide management information on the number of lifts, the number of visits to landfill sites, which is all downtime when trying to achieve/maximise efficiencies in collection rounds Queens Hills - density of housing, vehicle obstructions and difficulties in collection i.e. vehicle reversing, manoeuvring could potentially be improved Reduce incidents of speeding, this will mean the service would delivering a better, safer, more efficient service to our customers Reducing fuel costs by effective fuel management, fuel is one of the most expensive consumables used in operating the fleet of vehicles for waste collection services, street cleansing, grounds maintenance and pest-control. It would be normal to assume fuel consumption is based on mileage but driver behaviour, engine idling and in-effective route planning heavily impact it
6 Our trucks can waste 1 gallon of fuel per hour when idling which equates to approximately 5 worth of fuel. By identifying engine idling across the fleet the service can clearly demonstrate an instant cost saving and a return on our investment. Gear usage, harsh acceleration and braking can all be monitored and reduced by driver education with the overall objective of reducing fuel consumption Effective route planning is the more obvious way of saving fuel and probably still the most significant. A comprehensive fleet management system can view where vehicles are, enabling us to plan more efficient and effective routes, allow for adhoc responsive situations to be covered by the closest vehicle instead of sending out another vehicle 4. Other Options 4.1. Introduce a manual paper based system of recording journeys, driver information such as time sheets etc; these in turn would need to be inputted onto spread sheets in order to be useful and reportable. This course of action would be labour intensive and have resource implications as additional staffing would be required Accuracy of information could potentially be compromised, data quality cannot be guaranteed due to incomplete and missing data over a period of time 4.3. Driver behaviour and vehicle speed would not be reportable 4.4. The council decides not to purchase tracking software and relies on the very limited fuel wizard information to try and reduce costs. This again would require additional resources and only report on fuel usage and not driver behaviour. 5. Relevant Corporate Objectives Be businesslike and efficient providing services that people value the most Become among the best in the country for recycling Improve the health and well being of everyone who lives or works in South Norfolk 6. Implications and Risks 6.1. Financial 6.2. Allocation of 25,000 from capital budget for the purchase of a suitable vehicle tracking system has been agreed 6.3. Since the previous report the officers involved have carried out extensive negotiations and achieved savings in the purchase price, implementation and training
7 6.4. The service does not have sufficient funds available to take advantage of further savings of 10,000 as identified for the ongoing support and GPS updating etc over a 3 year period Environmental 6.6. Conservative estimates of 2% fuel savings would produce annual cashable savings of approximately 8,800, in addition a potential insurance cost reduction Reduced carbon emissions estimated at 24 tonnes per annum on a 2% reduction in fuel consumption 6.8. If manufacturers claims are taken the service could achieve 5% reductions in fuel and carbon emissions, this would produce annual savings of around 22,000 and 59 tonnes of CO2 emissions Table of potential savings Savings Fuel Consumption Est. Costs CO2 Emissions litres 's tonnes 1% , % , % , % , % , Risks of implementation The reliability of vehicles, equipment and software Loss of morale of drivers if they feel that they are being watched Lack of staff time to effectively use information generated by the system Reliance on 3 rd Party supplier Risk of non-implementation Increases in costs, fuel consumption, carbon emissions Failure to meet targets under the Carbon Management Plan Low staff moral due to uneven rounds and workloads Increased mileage for unnecessary journeys Unable to monitor driver competency
8 Loss of VOSA licence Low staff moral due to returning for unjustified complaints of missed bins. 7. Conclusion 7.1. There is a need to purchase a suitable vehicle tracking system for the Councils fleet of vehicles. To enable staff to manage, monitor and reduce vehicle journeys. Facilitate and enable training and education of drivers to increase their skills and competency. Produce and maintain accurate electronic records to meet the councils legal requirements. To reduce carbon emissions and make more efficient and effective use of the councils fleet of vehicles Additional funding is required to take advantage of the negotiations and cost of purchase of the package for the first 3 years, for the amount of 20, Members might consider that it is prudent to apply for the additional 20,000 required this current financial year in order to realise further savings of 10,000 over 3 years. 8. Action Required 8.1. That members acknowledge CMT support for the purchase and installation of a suitable vehicle tracking system for the Councils fleet.
ITEM NO: 9 ENERGY PANEL. Report To: 24 th July 2008. Date:
ITEM NO: 9 Report To: Date: Reporting Officer: Subject: Report Summary: Recommendations: Links to Community Strategy: Policy Implications: Financial Implications: (Authorised by the Borough Treasurer)
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