HomeMy WebLinkAboutItem 5 a.pdfMemorand um
To: Mayor and City Council
Steven C. Mielke, City Administrator
From: Chris Petree, Public Works Director
Dennis Feller, Finance Director
Date: 15 November 2013
Subject: Street Department Fleet Supervisor Cost Justification
ITEM 5 - a
City of Lakeville
Finance
The 2014 Proposed Budget was reviewed for expenditure appropriations which could be
reduced as a result of hiring a Fleet Supervisor that is anticipated to improve efficiencies. The
Fleet Supervisor position responsibilities include but not limited to monitoring and
controlling maintenance costs, expanding the application of technology, focus on improving
fuel efficiency and parts inventory control.
There are a number of areas which we believe the Fleet Supervisor can provide improve cost
efficiencies. An example is fuel management by implementing new fuel efficient strategies,
policies and purchasing program. Secondly, expanding the efficient application of
technology to the City's fleet management system has potential significant outcomes as
result management, purchasing and inventory control of commodities and inventories. An
example is the mobile management equipment on the City's plow trucks, which will result in
a reduction of deicing chemical usage that has been demonstrated in other agencies.
The 2014 budget provides approximately Preliminary estimates show approximately $1
million of appropriations for motor fuels and parts as well as approximately $300 thousand
for ice control chemicals. Although exact cost savings is unknown, a 5 -10% cost reduction
could annual save the City $65 - 130,000 each year.
The Fleet Supervisor compensation, including benefits, is $100,900.
Furthermore, the average annual acquisition of fleet equipment is approximately $1.8
million. Again, while staff is uncertain of the exact cost reductions with the addition of this
position, we are confident that efficiencies will be gained, performance improved and costs
will be reduced by the addition of this position.