HomeMy WebLinkAboutItem 03.a.iiiMemorandum
To: Mayor and City Council
Steven C. Mielke, City Administrator
Dennis Feller, Finance Director
From: Christopher J. Petree, Public Works Director
Date: 31 October 2013
Subject: Fleet Management
ITEM 3.a.iii
City of Lakeville
Public Works
Purpose
Evaluate options for effectively and efficiently managing Lakeville's vehicle and equipment
fleet.
Discussion
The City has established quantifiable methods for determining its vehicle and equipment
needs. These methods are based on infrastructure needs, expected service life of the item,
policies and procedures, laws and regulations governing equipment use, and cost of
ownership.
The City's fleet encompasses vehicles, self - propelled equipment, trailers, and a variety of
pumps, blowers, tampers, chainsaws, and other items necessary for the completion of tasks
throughout the City. Much of the City's fleet provides for public safety and emergency
response.
Lakeville is still a growing community, as it grows, so too will the need for additional
equipment grow. The fleet will continue to expand as additional miles of roads are added, as
additional miles of trails are added, as additional water and sanitary sewer main are installed,
etc. until the City reaches its build out.
Despite the continuing need for new and replacement items, the clear goal is to obtain the
greatest service life at the lowest cost of ownership. Any piece of equipment can be
maintained for any amount of time, but when it spends more time in the shop than in
operation, it is no longer cost effective and negatively impacts the City's efficiency.
To be effective, fleet management must find the balance between cost of ownership and task
efficiency.
• Controlling maintenance costs. Costs for maintenance in the private sector are
increasing at almost 5 percent annually. New engine oils, more stringent emission
regulations, new engine designs and components all add to increasing costs. This
translates to the public sector in the increasing cost of ownership whether in house or
contract maintenance is performed. Predictive and proactive maintenance, along with
maintenance planning, are ways to hold costs to a minimum.
• Expanding the application of technology. Technology is entering fleets at an
increasing rate. Solutions are available to address fuel efficiency, application rates for
material like deicer, efficient routing of snowplows, fleet routing, vehicle performance,
and address maintenance requirements. Being able to capitalize on technology and
make the proper application is basic to both controlling costs and increasing the
service life of the fleet.
• Focusing on improving fuel efficiency within the fleet. Finding the right vehicle or
piece of equipment to meet the task is an important part of fleet management.
Engine size, vehicle configuration, and towing capacity are three areas that are
significant what vehicle or piece of equipment will be able to do the job. These areas
also affect fuel efficiency. Having the ability to look at the task and find the best
equipment match has the potential to positively impact the City's fuel consumption.
• Gaining control over parts and inventory. To meet scheduled maintenance and react
efficiently to small repairs, a certain amount of parts are required to be readily
available to fleet service technicians. Not having a part can mean a piece of
equipment sits idle until the part is delivered and the repair is made. Having the right
number is parts -on -hand is important to the cost effectiveness of the fleet
maintenance area. Determining need and maintaining the proper inventory is a
method to control costs and make sound purchases.
Without effective fleet management, the City can only take the very smallest of steps in each
of these areas simply because there is not enough time to maintain the fleet while compiling
and collating data on fleet trends, benchmarking fleet performance, and establishing plans
and programs to be proactive in fleet decision making.
Options
For its fleet management, the City can:
a) Status quo. Continue to focus primarily on fleet maintenance. Use available fleet
data to perform scheduled maintenance. React to fleet needs with changes to City
specifications when ordering new and replacement equipment. Focus on function
versus need in replacement of equipment.
No cost in the near -term. Replacement of vehicles and equipment remains predicated
on service life and cost of ownership. No inventory of parts -on -hand is maintained.
Little is done to be proactive or predictive with fleet maintenance and operations.
b) Contract for fleet management services. Several private companies provide fleet
management services primarily oriented to vehicles and equipment. Services run the
2
gamut from fleet maintenance to strategic planning to replacement and resale of
assets. The contractor is off site and responds to maintenance needs through service
calls or by bringing vehicles and equipment to a central service location. Vehicles and
equipment can be out of service for longer periods of time, maintenance intervals for
scheduled maintenance may be extended, and the City may have limited control over
timing of replacements.
Increased cost in the near -term to transition the fleet from current practices. Some
maintenance capacity and parts inventory would be retained to service equipment
that does not fall under the contractor's umbrella. Some level of implementation of
strategic fleet planning and benchmarking of fleet performance.
c) Establish a full time Fleet Supervisor position. Has the ability to streamline
operations and apply technical solutions to best utilize staff and reduce consumption
of resources. Determines the most cost effective methods for meeting equipment
needs and supporting the varied missions within the City from public safety to
emergency response to infrastructure maintenance. Compiles and collates fleet data
to benchmark and maximize fleet performance.
Investment in near -term management and planning to improve fleet operations and
efficiency will better position City for optimal cost control in future years.
Conclusion
1. The first and second options provide for similar levels of maintenance and
management of the City's fleet. Basic maintenance needs would be taken care of by
both options. There would be some planning and fleet performance benchmarking
brought by the second option. However, the City would lose some control over
maintenance scheduling by contracting and would experience longer out of service
times for vehicles and equipment taken off -site for repairs. Additionally, most
contracted fleet management services focus on wheeled vehicles and equipment
resulting in the retention of some repair capability by the City for a significant amount
of small equipment.
2. Establishing a full time position would enable the City to become proactive in the
management and maintenance of its fleet maintenance and operations. It would
allow the development of plans and the evaluation of solutions to meet mission
responsibilities and better matching equipment to tasks performed. It would allow
the City to take the next steps in optimizing its fleet to meets its needs rather than
reacting to needs with the purchase of additional equipment.
3. In discussing fleet management, several factors will remain constant.
• The fleet will continue to grow to meet the needs of a growing City.
• Fleet costs will continue to grow as new equipment is added, standards and
regulations change, and as costs for parts and technology increase.
3
Recommendation
Staff recommends establishing a fleet management program and hiring a full -time Fleet
Supervisor position as proposed in the 2014 budget.
4
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Transmission, large
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suspension
Transmission,
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hydraulic cylinder
replacement, glass
repairs
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engine rebuilds,
suspension,
alignment on large
vehicles, specialty
computer and
systems on
emergency vehicles
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Centralized but
collaborate with
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when purchasing fleet
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committee for Fire
Dept. purchases.
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Standalone division
under Operations &
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Standalone under
Public Works
Division is stand alone,
Vehicle Maintenance
and Facility
Maintenance report
through Public Works
Equipment Maint.
Division is part of
Central Services under
the Parks & Recreation
Dept
Approx. 500 units
415 self - propelled
30 trailers
80 other
equipment
N/A self - propelled
300+ other
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163 other
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Assistant
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Superintendent
Superintendent
of Facilities &
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Public Works
Director
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Superintendent
of Parks,
Forestry, &
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4 mechanics /techs
1 PT administrative
6 mechanics /techs (1
focuses on Maint
Facility Building
Operations
2 Admin (1 fleet, 1
Maint Facility Admin
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Equipment
Supervisor
Equipment
Supervisor
Fleet
Superintendent/
Manager
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heavy diesel repairs,
major auto body
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technicians do not
have time to
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Transmission,
transfer case,
generator annual
inspections
Engine overhaul,
radiators, spring
works, transmission,
warranty work, inj.
Pumps, tires,
alternators/
generators, etc.
Major repairs
(transmissions),
transfer case, body
work, and warranty
work
Transmission,
transfer case,
differentials,
alignment, glass
repair, body work,
exhaust, other
misc.inspections
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Fleet Lead
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within Public Works
Dept
Included with Facilities
under Public Works
umbrella
Standalone under
Engineering and Public
Works Dept
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135 self - propelled
50 -75 other
equipment
217 self - propelled
and 184 other
equipment
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175 mobile
150 small
equipment
250 self - propelled
and trailers
500+ other
equipment
312 self - propelled
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$64,106- $83,242
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City
Administrator
Street
Superintendent
Public Works
Director
Public Works
Director
Public Works
Director
Engineering and
Public Works
Director
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Street Supervisor
and Municipal
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4 Fleet Service Techs
and 1 Fleet Service
Lead
4 mechanics /techs
1 administrative
4 mechanics /techs
1 welder
4 mechanics /techs
1 administrative
2 facilities staff
6 mechanics /techs
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Director of
Municipal
Services
V/N
Central
Equipment
Supervisor
Utility & Fleet
Maintenance
Manager
Central Services
Manager
Fleet Supervisor
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Yes, Fleet Supervisor
promoted to
Director of
Municipal Services
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Lakeville
Maple Grove
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Woodbury