Snow Operations and Fleet Management Best Practices Study Results
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1 CITY OF PRINCE GEORGE Presentation on Snow Operations and Fleet Management Best Practices Study Results 8 September 2014 Paul Lauria
2 Presentation Overview About the Mercury Associates, Inc. Team Project Scope and Approach Key Findings and Recommendations 1
3 About the Mercury Associates Project Team Mercury is an employee-owned fleet management consulting firm headquartered in the Washington, DC area, with employees located in more than a dozen states and in Ontario. Mercury s current/past Canadian clients include, among others, the cities of Calgary, Edmonton, Fredericton, Medicine Hat, North Bay, Saint John, Toronto, Vancouver, Waterloo, and York; the provinces of British Columbia, Ontario, and Saskatchewan; the Yukon Territory; Canada Post; ATB Financial; Bell; Horizon Utilities; Shell Canada, and Suncor Energy. The snow operations review was conducted by an independent contractor to Mercury, Mr. Stan Siu, a licensed engineer, consultant, and former municipal public works and operations department official. 2
4 Project Scope 1. Snow clearing practices review and evaluation, including condition assessments of selected fleet assets 2. Fleet management practices review and evaluation, including a. Vehicle replacement cycle review b. Fleet replacement planning and financing practices review 3
5 Project Methodology Information Request Kick-off meetings Site visit Inspection of facilities and equipment More than 30 interviews Data analysis and cost modelling Draft and revised draft reports 4
6 Scope of the Snow Operations Review Policy Equipment Operations Ice Control Training 5
7 Scope of the Fleet Management Review Asset Allocation and Utilization Management Asset Acquisition and Disposal Asset Operation Information Management Customer Service Asset Replacement Cycles Fleet Replacement Costs and Capital Financing 6
8 Main Areas of Concern Information Management Policy Framework Equipment Training Financial Management 7
9 Information Management No fit-for-purpose fleet management information system No automated work tracking system for snow and ice operations management No use of vehicle telematics Almost no use of quantitative performance measurements and benchmarking 8
10 Snow operations Winter preparation Level of Service Shifts Snow routes Plowing priorities Ice control Manual Policy Framework Fleet Management Policy Service Level Agreements 9
11 Condition Equipment Age Preventive maintenance program Inspections Rental equipment Market availability Selection of suppliers Retainers 10
12 (Millions) Baseline Fleet Replacement Plan $14 Gross Replacement Costs $12 $10 $8 $6 $4 $2 $ Fiscal Year 11
13 Fleet Replacement Statistics Total number of assets in replacement analysis 315 Number of asset classifications 107 Current mean asset age (years) 9.6 De facto average replacement cycle (years) 19.2 Average recommended replacement cycle (years) 9.5 Average asset purchase price (2014 dollars) $ 112,445 Gross fleet replacement cost (2014 dollars) $ 35.4 M Average annual fleet replacement spending requirement $ 3.7 M Average annual replacement expenditures ( ) $ 1.7 M Current replacement backlog $ 13.0 M Number of assets that exceed recommended replacement age 166 Percentage of assets that exceed recommended age 53% 12
14 Training Training analysis for operators and mechanics Past lessons Calibration Snow and ice control materials Weather reports Snow Seminar 13
15 Key Recommendations 14
16 Priority One Policy framework Fleet modernization Priorities for plowing Pre-winter preparation calendar Shift schedules Equipment calibration Weather service contracts Training Fleet management information system 15
17 Priority Two Utilization review Telematics Sign-off defects Fleet steering committee Charge-back rates Better LOS definitions Snow and ice SOPs External equipment supplier list Develop plowing schedules Material applications Back-up operators Implement recommended asset replacement cycles 16
18 Priority Three Reimbursement policy Key management reports and KPIs Accident review committee Customer meetings Winter parking restrictions Website Snow and ice control manual Training for drivertrainers 17
19 Priority Four In-house driver performance measurement system Salt management plan implementation status Training feedback Job descriptions Snow seminar 18
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