HomeMy WebLinkAbout2024-05-07; City Council; ; City Fleet UpdateCA Review GH
Meeting Date: May 7, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Bradley Northup, Public Works Superintendent
bradley.northup@carlsbadca.gov, 442-339-5193
Subject: City Fleet Update
Districts: All
Recommended Action
Receive a report on the state of the city’s fleet, economic and operational impacts, and next
steps for the Fleet Division in fiscal year 2024-25.
Executive Summary
The Fleet Division provides asset management, replacement planning, acquisition,
maintenance, repairs and fueling services to the city’s 490 vehicles and equipment.
This report provides the City Council with an overview of the city’s fleet, its ongoing operations
and projects, challenges and the strategies and plans for fiscal year 2024-25.
Explanation & Analysis
The Fleet Division operates a single 10,000 square feet, eight-bay maintenance and repair
facility located at 2480 Impala Drive, adjacent to the city’s Police and Fire Headquarters and
Safety Training Center buildings.
The city’s fleet currently includes 490 vehicles and equipment. The variety of vehicles and
equipment operated to complete maintenance operations and execute missions are typical of a
municipality that provides law enforcement, fire, street, water and wastewater services but
does not provide solid waste or street sweeping services with city staff.
Since 2018, the city’s fleet of vehicles and equipment has grown from a previous total of 400 to
its current total of 490 vehicles and equipment. This 22.5% increase in vehicles and equipment
in the last six years can be attributed to various authorized expansions of city services or new
programs where additional vehicles or equipment are added as new purchases or where aged
assets are retained from auction sale.
The city’s Fleet Division utilizes a number of best management practices to manage the city’s
fleet. These essential mechanisms have been established in Administrative Order No.3 – Fleet
Management Policy.
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The Fleet Division, similar to other government fleets, has been challenged by inflationary and
supply chain issues that have resulted in increased costs and extended lead times to receive
new vehicles. Additionally, the cost of fuel continues to increase each year. State regulatory
changes have also created challenges in the city’s ability to procure vehicles..
The city recently hired an outside consulting firm, Matrix Consulting Group, to evaluate its fleet
operations and provide recommendations for potential cost-saving options.
The report, attached as Exhibit 1 shows the city has:
• A fleet size comparative to a passenger vehicle fleet of more than 1,000 vehicles
• Vehicles with an average age of 6.8 years
o This is within recommended industry parameters for age and
respects the optimal lifecycles for vehicle replacement, which minimizes the
total cost of ownership
• Strong policies in place to manage and implement fleet best practices
• Customer satisfaction scores greater than the industry standard of 80%
o The customers, the city’s staff and departments, reported that they are satisfied
with Fleet Services
• Moved steadily toward electrification
o The city has plans in place to continue achieving more greenhouse gas emissions
reductions by electrifying the fleet
• Outgrown the current fleet maintenance facility and staff’s ability to fully support repair
work, necessitating possible increased outsourcing
• Implemented operational efficiencies and has adequate funding to support sustained
fleet operations
The report also examined potential cost-saving opportunities for the city’s fleet, including
leasing. While some cities have chosen to lease rather than purchase their fleet vehicles, the
report concluded that leasing vehicles will not provide significant cost savings compared to the
city’s current fleet operations.
Fiscal Analysis
No city funding is requested as part of this informational report.
Next Steps
Fleet staff will continue to work with city departments to proactively identify, verify and
validate vehicle utilization, vehicle assignments and methods of operation to ensure city
vehicles are optimized to reduce costs and managed in a way that supports the city’s
sustainability goals.
Environmental Evaluation
This action does not require environmental review because it does not constitute a project
within the meaning of the California Environmental Quality Act under California Public
Resources Code Section 21065 in that it has no potential to cause either a direct physical
change or a reasonably foreseeable indirect physical change in the environment.
Exhibit
1. Draft Options Analysis – Fleet Financing (Matrix Consulting Group)
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Options Analysis - Fleet Financing
CARLSBAD, CALIFORNIA
April 28, 2024
Exhibit 1
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Table of Contents
1 Executive Summary 1
2 Introduction and Fleet Overview 4
3 Staffing Analysis 13
4 Customer Service Survey 16
5 Options 19
6 Cost Benefit Analysis 23
7 Recommendations 29
Appendix A – Job Descriptions 30
Appendix B – Customer Service 34
Appendix C – VEU Calculator 35
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Options Analysis Carlsbad, CA
Matrix Consulting Group 1
1. Executive Summary
The City of Carlsbad has a fleet of 431 vehicles with a replacement value of $37.7 million.
The fleet budget for 2022-23 was approximately $8.8 million, of which $5.3 was for
capital outlay. The City wishes to explore whether cost savings are possible by changing
the financing method or operations of the Fleet Services Division. Matrix Consulting
Group was engaged for this purpose. Fleet size and composition changes almost daily.
The analysis is based on data provided by the City in August 2023.
We first prepared a Fleet Profile, showing the current state of the fleet. The fleet has an
average age of 6.8 years which is within industry standards. The City operates a
maintenance and repair shop staffed as outlined in section 2.4 of this report. Our analysis
concluded that in order to maintain the desired service levels at the lowest cost, two
additional mechanics are needed for a fleet of this size. Although plans are in place for
shop modifications, the current plan may not completely address the workspace
deficiencies discussed. If the shop cannot expand to accommodate workload, increased
outsourced repairs are the only option.
As service levels are important to the City, we conducted a customer satisfaction survey.
The results were higher than the industry threshold of 80% satisfaction, with customers
expressing a high level of satisfaction with the strengths in knowledge and experience of
the fleet team. The weakness commonly noted was staff availability which impacted
repair times. A summary of the survey can be found in section 4 of this report.
A neighboring City with a smaller fleet has adopted the Enterprise leasing model with a
fixed price maintenance plan. The person responsible for implementing the program was
interviewed and indicated that the City has not done a cost analysis of this option but is
very satisfied with vehicle availability. Carlsbad is interested in exploring the costs and
benefits of this, and other, leasing models.
After gathering the information for the current state profile and assessment, we identified
and analyzed the options available against the City’s selected decision criteria. These
options were:
• Maintain status quo.
• Delay replacement.
• Expand shop capacity.
• Adopt the Enterprise lease model with maintenance.
• Adopt a traditional lease model with or without maintenance.
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Options Analysis Carlsbad, CA
Matrix Consulting Group 2
Each option was evaluated using the weighted decision criteria shown in the table below.
Criterion Weight
Service Levels 3
Costs 2
Electrification 2
Vehicle Availability 1
Business Continuity 1
Data 1
A full discussion of each option appears in the main body of this report. Our summary of
each option found:
Status Quo
Delay
Replacement
Expand
Shop
Enterprise
Lease Model
Traditional
Lease Model
Service
Levels
82% but
decreasing due
to long repair
times.
Longer
lifecycles will
result in
increased
downtime and
lower customer
satisfaction.
Service levels
will increase
once expansion
is complete.
Service levels
should increase
if long delays
associated with
in-house repair
are avoided.
Service levels
should increase
if long delays
associated with
in-house repair
are avoided.
Costs
$5.3 capital
$3.5 operating
including
inhouse main
of $700K and
outsourcing of
$890K.
Extending
lifecycles
results in higher
Total Cost of
Ownership
(TCO).
More than $2.2
M for
expansion.
$220K for 2
mechanics.
Save over
$500K of
outsourced
repair.
Costs exceed
fleet purchase
costs.
Costs exceed
fleet purchase
costs.
Electrification
The City is on
track to meet
goals in the
Strategic Plan
and Climate
Action Plan.
The City may
not meet
electrification
targets.
This option
would not
impact the City’s ability to
meet
electrification
targets.
Leasing may
enhance access
to EVs.
Leasing may
enhance access
to EVs.
Vehicle
Availability
Over 90% due
to skill of staff.
Older vehicles
are less reliable
so availability
will decrease.
Availability will
increase.
Vehicle
availability will
likely increase.
Vehicle
availability will
likely increase.
Business
Continuity
No disruption No disruption. Largest
disruption
during shop
expansion.
Medium
disruption while
internal
processes are
adjusted.
Medium
disruption while
internal
processes are
adjusted.
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Options Analysis Carlsbad, CA
Matrix Consulting Group 3
Status Quo
Delay
Replacement
Expand
Shop
Enterprise
Lease Model
Traditional
Lease Model
Data
Asset Works is
the system of
record.
Asset Works is
the system of
record.
Asset Works is
the system of
record.
Will need to
integrate Leaser
system.
Will need to
integrate Leaser
system.
We therefore recommend that the City increase shop capacity and staffing as the best
option to maintain and increase service levels while ensuring efficiencies in fleet
acquisition and maintenance. Although there are advantages to leasing, it does not
address the main priorities of the City which are service levels and costs.
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2. Introduction and Fleet Overview
2.1 Introduction
This descriptive fleet profile of the City of Carlsbad’s fleet summarizes the organizational
structure, and primary operations of the fleet. It includes an overview of the current fleet
makeup, the operating and capital budgets, a summary of staffing, an overview of the
policy framework and an inventory of the primary technological tools utilized to manage
the fleet.
The descriptive profile does not attempt to include every organizational and operational
facet related to the fleet. Instead, it provides an overview of the current state that will be
useful as recommendations are developed during the study. This profile will be used as
a starting point to show how specific recommendations will impact the organization’s
approach – whether in organizational structure, operational practices, or in the makeup
and management of the fleet.
2.2 Fleet Overview
The fleet organization, known as the Fleet Services Division, manages 431 assets with a
total estimated replacement value of $37.7 million. The following table shows the
number of assets assigned to each Department as well as the total estimated value of
those assets.
Department Count Estimated Value
Administrative 1 $33,000
Community Services 71 $2,900,000
Fire 53 $17,011,348
Police 152 $9,241,500
Public Works 154 $8,489,029
Total 431 $37,674,877
The vehicle and equipment assets are a variety of types needed to support the operations
of a city. The next table show assets by classification and accumulated mileage/hours
of use.
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Classification Count Avg. Age
Cart/ATV 5 8.0
Equipment HD 17 10.2
Equipment MD 8 12.8
Fire Apparatus 13 12.3
Fire Aerial 2 9.5
Fire Ambulance 9 4.9
Generator/Pump/Motor 7 4.6
Motorcycle 14 4.3
Patrol Pickup 3 4.0
Patrol SUV 55 3.3
PD Armored Vehicle 1 11.0
PD Command Center 2 5.0
Sedan 31 7.8
Sign / Barrier 12 5.7
SUV 84 6.6
Sweeper 2 11.5
Trailer 18 9.2
Truck HD 9 7.0
Truck LD 92 6.7
Truck MD 30 6.7
Van 14 9.6
Watercraft 3 3.3
Total 431 6.8
The fleet is also categorized by model year and displayed in graphical form. This graph
demonstrates the number of assets in the active fleet by year of acquisition. The peaks
and valleys in the graph reflect fluctuations in acquisitions (as shown in the 2018 decline,
for example) and also illustrates the effect of the City’s disposal practices (as shown by
the few active vehicles acquired before 2014). These acquisition and disposal timelines
are linked to the City’s replacement strategy.
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Fleet by Model Year
The average age of vehicles as well as their utilization levels and annual maintenance
costs are important factors in replacement decisions. The following table provides the
current average hour and mileage readings by equipment classification.
Classification Hours Miles
Cart/ATV 411 1,919
Equipment HD 819 496
Equipment MD 517 613
Fire Apparatus 73,620
Fire Aerial 73,595
Fire Ambulance 96,865
Generator/Pump/Motor 215
Motorcycle 26,619
Patrol Pickup 37,064
Patrol SUV 59,556
PD Armored Vehicle 11,239
PD Command Center 15 4,433
Sedan 60,501
SUV 48,388
Sweeper 89
Trailer 132 5
Truck HD 26,925
Truck LD 44,757
Truck MD 33,877
Van 47,591
Watercraft 300
0
10
20
30
40
50
60
70
80
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2.3 Budget
The City of Carlsbad fiscal year (FY) runs from July 1st to June 30th. Vehicle and
equipment replacement are funded through monies collected from Departments. The
following table shows actual expenditures for FY 2019-2020 and 2020-2021 and FY2021-
2022 as well as the FY2022-2023 budget.
Budget Item
2019-2020
Actuals
2020-2021
Actuals
2021-2022
Actuals
2022-2023
Budget
Personnel Services:
Salaries and Wages $666,389 $788,752 $772,136 $845,915
Retirement Benefits $146,326 $266,093 $233,283 $200,165
Health Benefits $106,408 $153,023 $165,871 $188,345
Other Personnel Benefits $65,738 ($31,517) ($160,425) $36,383
Sub-total $984,861 $1,176,351 $1.010,865 $1,270,808
Operating Expenses:
Professional and Contract $54,364 $52,591 $30,430 $39,343
Supplies and Materials $1,378,856 $1,497,606 $1,725,898 $1,538,793
Repair and Maintenance $381,804 $341,016 $432,499 $410,094
Interdepartmental Charges $124,639 $161,686 $201,372 $228,549
Other Operating Expenses $30,124 $30,347 $235,405 $18,553
Capital Outlay $3,594,743 $1,709,482 $3,641,548 $5,293,745
Sub-total $5,564,530 $3,792,728 $6,267,152 $7,529,077
Total $6,549,391 $4,969,079 $7,278,017 $8,799,885
The annual budget summary provided the following pertinent information:
• The fleet maintenance program is funded through charges based on vehicle type
and utilization.
• The fleet vehicle replacement program is funded through a replacement charge
for each vehicle or equipment in service, determined by actual costs of vehicle
procurement divided by the expected life of the vehicle. Adjustments to fund
contributions are reviewed annually and adjusted for inflation.
• The replacement fund covers asset replacement and vehicle outfitting.
• Cost-effective vehicle procurement is achieved through cooperative purchasing
agreements and bidding processes.
• Revenue is collected from the sale of retired city fleet assets at auction and
returned to the fleet replacement fund
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Although capital replacement is included in this view of the overall fleet budget, the
capital fund is distinct from the operating and maintenance fund.
2.4 Organization
The organizational chart of the City’s fleet section appears below. The Fleet Services
Division is led by the Fleet Public Works Superintendent who reports to the Public Works
Manager.
Deputy City
Manager -
Public Works
Public Works
Manager
Fleet Public
Works
Superintendent
Public Works
Supervisor
Lead
Equipment
Technician
Equipment
Technician II
(2)
Equipment
Technician I (2)
Warehouse
Technician
Maintenance
Assistant (PT)
Accounting
Tech
Office Assistant
(PT)
Management
Analyst
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2.5 Job Descriptions
In general, job descriptions were thorough and described typical duties associated with
the positions. The Management Analyst is a generic description and does not have
specific fleet responsibilities. The Maintenance Assistant description is not a full job
description, only bullets provided in a summary document that includes all hourly
positions. Part time positions are allocated to all City Departments and do not have a
specific fleet role definition. A complete listing of positions with a summary of key
responsibilities appears as Appendix A.
2.6 Policies
The City has a strong policy foundation with a Strategic Plan, Climate Action Plan, Fleet
Policy Manual and Driver’s Handbook (in draft). A summary of the content found in each
document is included in the table below.
Policy Description
Strategic Plan
• The City of Carlsbad’s Strategic Plan (2023 – 2027) contains Goal 3:
Sustainability and the Natural Environment.
• Two Key Performance Indicators (KPIs) directly related to fleet are
Greenhouse Gas (GHG) emissions and the percentage of the city fleet
powered by hybrid or electric vehicle technology. • Objectives include: – Increase citywide electric vehicle charging infrastructure and
transition all passenger fleet vehicle purchases after FY 2022-
23 to be electric vehicles, with the exception of public safety
vehicle purchases, which will be electric where feasible. – Develop partnerships with nonprofit, academic and other non-
governmental organizations to leverage environmental
sustainability efforts and programs.
Climate Action
Plan
• The original plan was drafted in 2015 and it was updated in 2020. An
additional update is underway. • Covers the reasons for emissions reduction as well as the legislative
environment.
• The City tracks key data such as fuel consumed and Vehicle Miles
Travelled (VMT) to calculate carbon dioxide (CO2) emissions and
nitrogen dioxide (NO2) and methane (CH4) emissions. • The City must comply with the State of California’s Executive Orders to
reduce its GHG emissions to 1990 levels by 2020, to 40 percent below
1990 by 2030, and to 80 percent below 1990 levels by 2050.
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Policy Description
Administrative
Order 03
• The Order was updated in 2021 and covers a full range of fleet and
related topics including: – Defining official use of City vehicles. – Outlining responsibilities of the Fleet Services Division and
Department liaisons.
– Acquiring, funding and replacing vehicles.
– Complying with the Climate Action Plan.
– Utilizing vehicles efficiently.
– Maintaining fleet vehicles.
– Preventing and managing accidents.
– Providing fuel for fleet vehicles.
Operator’s
Handbook
• Fleet Services Division is currently working on this document.
The Fleet Services Division does not use Service Level Agreements (SLAs) with any
customers. They are considering, however, the benefits of establishing SLAs with police
and fire.
2.7 Technology
The following table provides a summary of the technology utilized in fleet operations.
Each tool or application is accompanied by a description of its functionality and the
primary ways it is used. Telematics, which includes mobile tracking and communication
of vehicle operating status, fuel levels, location, and acceleration/deceleration with a fleet
management system are not used.
Technology Description
AssetWorks FA
• Fleet management information system used to create work orders, PM
scheduling, labor tracking, and parts and inventory tracking. • Contains parts inventory function for tracking the purchase and use of parts to
work orders. • Accounting Technician and IT representative attended Asset Work Academy
for training.
Fuel Focus
• Fuel Focus is used to monitor all fuel dispensing activities at the City’s fuel
location. • Each vehicle is assigned a fuel fob that is swiped at the kiosk to authorize the
dispersing of fuel. The fuel yard kiosk requires the driver to input an employee
pin number, mileage, and fuel type before dispensing is authorized.
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Technology Description
Voyager Fuel Cards
• There is a fuel credit card, Voyager Fleet Fuel, used by departments when fuel
yard locations are not easily accessible.
Telematics
• The City is conducting a pilot for telematics.
2.8 Sustainability
In terms of pursuing advanced fuel technologies, the City has purchased the following
on-road electric vehicles:
• 5 EVs • 22 PHEV • 63 Hybrids
These purchases include a variety of models such as Bolt, Leaf, Transit, Lightning, Prius,
Escape, Rav 4, Niro and Explorer. In addition to the assets listed, the City plans to acquire
five to ten EVs each year until 2027.
For supporting infrastructure, the City has, or is building, the significant capabilities
shown below.
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Station Location Service Type Number of Ports Charge Level
Oak Ave PW Yard Fleet Only 2 Level 1
Carlsbad Municipal Water District Fleet Only 1 Level 1
Dove Library Fleet/Staff 10 Level 2
Faraday Fleet/Staff 10 Level 2
Fleet Yard Fleet Only 4 Level 2
Fleet Yard Fleet Only 2 Level 3
Safety Center Fleet/Staff 5 Level 2
Orion Center Fleet/Staff 22 Level 2
Fleet Yard Fleet Only 26 Level 3
Active
In Construction / Planned
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3. Staffing Analysis
The number of technicians and related positions required for a maintenance operation to
operate effectively is primarily driven by the size and composition of the fleet it serves.
A process known as Vehicle Equivalent Unit (VEU) calculation is used to equate the level
of effort required to maintain dissimilar types of vehicles to a passenger car, which is
given a baseline VEU of 1.0. Work with other fleet organizations has shown that a VEU
of 1.0 is equal to between 10 and 15 annual maintenance labor hours, depending upon a
number of factors unique to each organization. All other types of vehicles are allocated
a VEU value based on their relationship to a passenger car. For example, a Patrol SUV is
assigned a VEU of 3.0. This means that a vehicle of this type on average requires about
3 times the annual maintenance hours of a passenger car or between 30 and 45 hours
per year.
For this project, a VEU was assigned for each classification of vehicles or equipment. The
431 vehicles and equipment pieces in the fleet total 1,061.25 VEUs. Therefore, the
Department’s fleet maintenance responsibilities are equivalent to those of maintaining a
fleet of almost 1,061 passenger cars. The following table summarizes the VEU
calculations:
Classification Count VEU/asset
Total
VEU
Cart/ATV 5 0.5 2.5
Equipment MD 8 3 24
Equipment HD 17 5 85
Fire Aerial 2 8 16
Fire Apparatus 13 7 91
Fire Ambulance 9 6 54
Generator/Pump/Motor 7 0.25 1.75
Motorcycle 14 1 14
Patrol Pickup 3 3 9
Patrol SUV 55 3 165
PD - Armoured Vehicles 1 5 5
PD - Control Center 2 5 10
Sedan 31 1 31
Sign / Barrier 12 0.25 3
SUV 84 2 168
Sweeper 2 10 20
Trailer 18 0.5 9
Truck LD 92 2 184
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Classification Count VEU/asset
Total
VEU
Truck MD 30 3 90
Truck HD 9 5 45
Van 14 2 28
Watercraft 3 2 6
Total 431 1,061.25
The next step in our analysis was to determine the number of labor hours required to
maintain one VEU. The baseline is 10 hours per year, but adverse or challenging
conditions can increase this, while unusually good conditions can drive labor demand
down. In determining the number of hours per VEU for an organization, a number of
factors that are unique to each fleet are considered. These factors include fleet age and
condition, usage levels, degree of outsourcing, and overall operating environment.
For Carlsbad, the labor factor required to properly maintain the fleet is calculated at 10.5
hours per VEU. Our calculation is shown in the following table:
Hours per VEU
10 Baseline Hours per VEU
0 Adjustment for fleet age
0 Adjustment for utilization levels
0 Adjustment for operating environment
0 Adjustment for facility and tools
0 Adjustment for parts support
0.5 Adjustment for systems integration
10.5 Total Hours per VEU
With 10.5 labor hours per VEU expected, the annual maintenance and repair workload is
calculated to be 11,143 hours (1,61.25 VEUs x 10.5 hours/VEU).
While a fleet mechanic’s salary is based on 2,080 hours per year (52 weeks x 40 hours
per week), only 70% or 1,456 labor hours per year are available to perform actual
maintenance work. The remaining payroll hours are lost to vacation, sick time, holidays
and indirect time such as training and meetings. When the 11,143 mechanic hours
required to maintain the fleet are divided by the 1,456 annual labor hours available per
mechanic, the result is a need for 7.7 mechanic Full-Time Equivalent (FTE) positions.
Not all of this workload will be necessarily handled in-house. Depending on the fleet
composition, the availability of warranties and favorable vendor contracts, and the
strategy and approach of the City, a portion of these hours may be outsourced. Best
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practice is to outsource 10-15% of maintenance, with a focus on warranty work, time-
consuming repairs, or work that requires special training or tools to deal with a high
degree of complexity. Outsourcing 15% of work would result in a reduction in the FTE
positions required from 7.7 to 6.5.
Carlsbad currently employs a lead technician and four technicians for a total of 4.5 FTE.
This leaves a shortage of two technicians when outsourcing 15% of the workload. The
VEU Calculator has been provided as Appendix C.
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4. Customer Service Survey
An annual customer survey is an efficient way to gather information that can improve
fleet service levels. A simple five-point scale can be used to gauge satisfaction with key
fleet functions. The results can be used to measure progress over time. The City does
not have a formal process in place to measure customer satisfaction.
We conducted interviews with the five main user Departments who were asked to rate
the Fleet Services Division in eleven areas of customer service. The categories were
defined as shown below.
Customer Satisfaction Categories
Communication. Fleet communicates about the status of items in the shop and gives timely
updates of work completion.
Customer Service. Vehicle drop-off and pick-up is convenient, organized and handled in a
professional manner.
Preventive Maintenance (PM). Fleet has a PM plan and ensures PMs are up to date on all
vehicles.
Vehicle Availability. Vehicles are available to meet operational requirements. The target is
95% availability.
Timeliness of repairs. Vehicles are repaired in a timely fashion (major repairs 7 days, minor
within 48 hours)
Quality of repairs. Comebacks for the same issue should be very rare.
Parts. When vehicles go for PM, the regular parts are on hand. Adequate and correct parts
kept in inventory. A system is in place to get parts as needed.
Technicians. Shop has adequate, trained technicians for the volume of work.
Acquisition Process. Customers are consulted throughout the process and the outcome
meets their operational needs.
Facility. The location of the shop and operating hours meet customer needs.
Fuel. The location of fuel is convenient and good control measures are in place.
Each Department was independently interviewed and asked to rate their satisfaction with
Fleet Services on a scale of 1 to 5 with five being the highest rating. The results of this
survey appear in the next table.
Criteria/Customer A B C D E Av
g
.
Communication 2.00 4.00 5.00 4.50 4.00 3.90
Customer Service 3.00 4.25 5.00 5.00 5.00 4.45
Preventive Maintenance 3.75 3.00 5.00 5.00 4.00 4.15
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Vehicle Availability DNR DNR 5.00 5.00 5.00 5.00
Timeliness of repairs 2.00 3.00 5.00 4.50 4.00 3.70
Quality of repairs 4.25 4.50 5.00 5.00 4.00 4.55
Parts 4.00 3.50 5.00 DNR 5.00 4.38
Technicians (sufficiency) 4.00 4.00 5.00 4.50 2.00 3.90
Acquisition Process 5.00 4.20 5.00 4.00 4.00 4.44
Facility 5.00 3.70 5.00 3.50 3.00 4.04
Fuel 5.00 2.00 5.00 5.00 5.00 4.40
Overall Average 3.80 3.62 5.00 4.60 4.09 4.23
In addition to these ratings, fleet customers were asked to state what they felt the Fleet
Service Department’s main strengths were. Their comments included:
• “The Fleet Manager has great interpersonal skills and has built trust between Fleet
and their customers.”
• “Technicians are helpful, responsive and creative.”
• “Fleet Services focuses on meeting operational needs.”
• “Fleet Services is increasingly a data-driven organization.”
In terms of areas for improvement, customers suggested the following:
• “Increase the number of technicians and shop personnel to reduce repair time.”
• “Communicate on the status of vehicles while in the shop, not just when repairs
are complete.”
• “Create a reception area with customer service staff so drivers dropping off
vehicles do not continually disturb technicians.”
• “Have loaner vehicles available to use while repairs are being done.”
The detailed comments by Department (Appendix 2) were provided to the City and steps
are already underway to address the areas for improvement.
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5. Options
5.1 Option Descriptions
After review of the fleet and interviews with stakeholders several key findings were
evident:
• The fleet is currently within recommended industry parameters for age and
respects optimal lifecycles for vehicle replacement which are set to minimize Total
Cost of Ownership (TCO).
• The fleet has outgrown the current maintenance facility and the staff’s ability to
fully support repair work, necessitating increased outsourcing.
• The organization has moved towards electrification and intends to continue to
pursue Greenhouse Gas (GHG) emissions reductions by electrifying the fleet.
• Customers are satisfied with Fleet Services and believe under-staffing is the cause
of repair delays.
• A neighbouring City (San Marcos) is leasing their vehicles using the Enterprise full-
maintenance package option.
San Marcos has a fleet of approximately 300 vehicles, of which 100 come under
Enterprise for financing, maintenance, and disposal. The staffing report, dated February
24, 2015, that led to their decision to lease was reviewed as part of this study. The report
noted that deferring fleet replacement had contributed to a situation where 43% of light-
duty vehicles were past their useful life and needed to be replaced immediately “to
mitigate the escalating repair and maintenance costs.”
Of the 100 vehicles leased, most vehicles are light-duty but there are approximately 30
that are specialized. All assets in the leasing program have a five-year lifecycle except for
one water truck. The arrangement has been in place since 2015 and has no expiration
date.
The advantages of the current program include that the full maintenance program
provided relieves workload on City mechanics, the turnkey solution requires little effort
from City staff who are regularly turning over, the maintenance program is convenient to
drivers who have access to an extensive network, and Enterprise’s buying power has
ensured that no orders for vehicles have been cancelled.
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On the other hand, the City does not have a single repository of fleet data and has not
compared costs between an Enterprise maintenance lease and inhouse repair. For San
Marcos, costs are not the driving factor. They see value in not having to actively manage
the 100 vehicles that are leased, and current staffing prevents resuming this workload.
These observations led to consideration of several options. These options were identified
by the consulting team and/or suggested for exploration by the City.
• Maintain Status Quo. Is the current method of owning vehicles and maintaining
them through a mix of inhouse and outsourced maintenance the best option?
• Increase maintenance facility size and staff. Can the shop capacity be increased
whether vehicles are purchased or leased?
• Delay fleet replacement. Will extending the lifecycles of fleet vehicles result in a
lower TCO?
• Lease a portion of the fleet. Can a leasing program, with or without maintenance
included, save money?
In exploring these options, the City expressed a desire to ensure fleet condition and age
remain consistent, the increasing maintenance workload is met, electrification goals
continue to evolve and service levels remain constant or improve. Before exploring each
option, the decision criteria that will be used in making final recommendations will be
described.
5.2 Decision Criteria
In order to make a recommendation that aligns with the strategic goals of the City,
interviews were held with stakeholders to fully understand priorities. City personnel
assessed the key factors as service levels, costs, vehicle availability, electrification,
business continuity and provision of data for performance measurement. Each criterion
is explained in detail:
Service Levels. The recommended solution must ensure that service levels remain at the
current standard or improve. This will be measured through the customer satisfaction
survey and several industry Key Performance Indicators (KPIs).
• Customer Satisfaction. This KPI measures the level of satisfaction that fleet
customers have with the services provided by fleet. A satisfaction level of 80% or
higher on the Customer Satisfaction Survey is desired.
• Availability. This KPI measures the percentage of assets available for operational
support on a given day. The industry standard is 95%.
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• Preventive Maintenance (PM) Compliance. This KPI measures the percentage of
PMs that are completed by their due date. The industry standard is 95%.
• Repair Times. This KPI measures the amount of time a vehicle spends in the shop
for major and minor repairs. The industry standard is less than seven days for a
major repair and 48 hours for a minor one.
Costs. The recommended option must ensure that the TCO is acceptable and affordable
for the City. Factors that must be considered include:
• The role of interest rates.
• The spiralling capital costs of vehicles.
• Short- and long-term costs of leasing.
The costs of operating in the current model are known. We obtained pricing from two
leasing companies as points of comparison.
Electrification targets. The City’s Strategic Plan calls for all passenger vehicles
purchased after 2022-23 to be electric and the Climate Action Plan describes GHG
emissions targets that Fleet Services needs to meet.
Vehicle availability. Supply chain issues continue to impact the availability of certain
vehicles and the order times needed to acquire them. In some cases, this leads to
selecting vehicles according to what is available now, rather than what is best for the job.
Business continuity. Change (even temporary) can be a challenge and has a cost. This
could include allowing time for systems integration or temporary relocation to a different
facility.
Provision of meaningful data. Fleet Management is a data-driven business, and any
recommendation must ensure the necessary data will be available to make operating and
replacement decisions. A single system of record needs to be in place for effective
decision making to happen.
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5.3 Decision Matrix
The City was asked to weight the six decision criteria and selected the following values:
Criterion Weight
Service Levels 3
Costs 2
Electrification 2
Vehicle Availability 1
Business Continuity 1
Data 1
The costs and benefits of each option considered these criteria, and the final
recommendation is based in the relative importance of each.
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6. Cost Benefit Analysis
Each of the options are presented with a discussion of the decision criteria and how they
relate to that option.
6.1 Retain Status Quo
Status quo means that the fleet budget, facility, staffing and fleet size would remain the
same, allowing for increases due to inflation. The immediate problem with this option is
that it fails to meet one of the goals of the study which is to find savings in the provision
of fleet support while not compromising service levels. A discussion of the decision
criteria follows.
Service Levels. Currently, the Fleet Services Department is meeting the benchmark of
80% in customer satisfaction as demonstrated in the survey conducted. Vehicle
availability is high. Preventive maintenance compliance is falling behind, and repair times
are often extended. This is not due to customer delinquency, rather to the facility size and
shop manning. Therefore, the Status Quo option is seeing a decrease in service levels
which is expected to continue over time.
Criterion Benchmark Meets Standard
Customer Survey 80% Yes
Vehicle Availability 95% Yes
PM Compliance 95% No
Repair Times Minor - 2 days Yes
Major - 7 days No
Cost. The costs associated with the Status Quo option in 2022-23 were $8,799,885 which
includes capital outlay of $5,293,745. In-house maintenance costs were $697,350.33 and
outsourced maintenance (labor and parts) was $887,036.55.
Electrification. Status quo would see the City following electrification and emissions
targets. Electric vehicle availability is a risk in meeting those targets.
Vehicle Availability. The dedication of the staff and judicious (and increasing) use of
outsourcing have ensured a vehicle availability that meets industry standards.
Business Continuity. In terms of continuity, the Status Quo option involves the least
amount of interruption.
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Data. The City uses AssetWorks FA and the integrated Fuel Focus system. The Fleet
Manager has training and experience and is able to use the data generated to make
informed fleet management decisions.
6.2 Expand Shop
The City has approved an initial design to increase the capacity of the shop by allowing
for additional workspace. There are several options available that would allow space for
additional mechanics which would decrease the time of repairs and ensure outsourcing
(and related costs do not increase).
Service Levels. Since the major complaints on service levels related to timeliness of
repair, increasing the shop capacity and number of mechanics would result in an
improvement in this area. Inhouse repair is almost always faster than outsourcing due to
the ability of Fleet to decide priorities and no requirement to transport vehicles offsite.
Cost. There is a one-time cost associated with the facility improvement that has yet to be
fully quantified. The 2017 estimate was $2.2 million. An additional two mechanics would
cost approximately $300,000 annually (using the City’s $73 per hour burdened rate time
2,080 hours per year) but be offset by a decrease in outsourcing of approximately 3,000
hours’ worth of work each year. These 3,000 hours of work costs approximately
$600,000.00 to outsource at an average labor rate of $200 per hour. This rate reflects
the average of rates provided by six local automotive repair shops. In addition, fleet would
save some labor costs required to transport vehicles to and from vendors. Although Fleet
has an arrangement with Ford to provide this service for free, Fleet personnel are used
for this transportation to other vendor locations.
Electrification. The acquisition of EVs is not impacted by shop expansion except that new
bays could be specifically outfitted for EV needs.
Vehicle Availability. Availability of vehicles will increase with additional in-house
maintenance staff.
Business Continuity. The expansion plan of the maintenance facility will have to be
phased to allow uninterrupted work to continue in the main bays. Two options to avoid
disruption – deployment of technicians to customer sites or short-term lease of facility
adjacent to the current one. Despite this, some interruption to work would be expected.
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Data. As per the Status Quo option, The City uses AssetWorks FA and the integrated Fuel
Focus system. The Fleet Manager has training and experience and is able to use the data
generated to make informed fleet management decisions.
6.3 Delay Vehicle Replacement
Many organizations are discussing the option of delaying vehicle replacement, either due
to extended order cycles for vehicles or due to a
shortage of capital funds. The economics of
fleet replacement suggest that this is almost
always a more expensive option than replacing
vehicles according to their optimum lifecycle.
Equipment capital costs tend to decline over
time, while operating and maintenance costs
increase. The combination of these two basic
curves gives the total cost curve. The economic
theory of vehicle replacement says that vehicles
should be replaced when the Total Cost of Ownership (TCO) is the lowest, which is during
the flat portion of the curve. This chart, from APWA’s “Managing Public Equipment”,
shows this concept. The total cost curve can vary significantly for different types of
equipment. Factors that impact total costs and lifecycle timing include purchase price,
operating environment, utilization levels, and maintenance practices. It is, however,
important to note that the optimum replacement point in the total cost curve is not a
single point. The flat bottom of the curve indicates that vehicles should be replaced
during that window of time (often a 1-2 year range), before maintenance costs spike.
Delaying replacement past the optimum point can postpone the capital spend but will
cost significantly more over the life of the fleet.
Service Levels. Delaying replacement will increase maintenance time and spend as
demonstrated by the graph pictured above. More time in the shop will result in a decrease
to customer satisfaction.
Cost. Delayed replacement is an attractive short-term option as it defers spend. The
Economics of Fleet, however, will demonstrate that the TCO or lifecycle costs (capital
costs, fuel and maintenance) for a fleet replaced beyond optimum lifecycles will increase.
In the example below, the total lifecycle costs reflect the purchase price less residual
value of the asset plus the operating costs (fuel and maintenance). This is divided by the
years in service for the annual lifecycle cost and by the miles travelled for the cost per
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mile. The cost over least expensive is the additional cost of not replacing this vehicle in
year 5. Fleetwide costs reflect that there are 132 of these vehicles in the fleet.
Costs Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Lifecycle Total Cost $19,197 $29,609 $39,560 $49,883 $61,490 $75,466 $93,188 $116,476
Lifecycle Annual Cost $19,197 $14,804 $13,186 $12,470 $12,298 $12,577 $13,312 $14,559
Lifecycle Cost per Mile $1.72 $1.33 $1.18 $1.12 $1.10 $1.13 $1.19 $1.31
Costs over Least Exp $6,899 $2,506 $888 $172 0 $279 $1,014 $2,261
Fleetwide costs $910,668 $330,792 $117,216 $22,704 0 $36,828 $133,848 $298,452
The optimum replacement point for this vehicle is year 5. Keeping the 132 vehicles of the
class for three additional vehicles (eight years) will increase the TCO by almost $300,000.
Some other considerations include:
• Vehicle costs, especially for heavy-duty and specialty vehicles are increasing at an
unprecedented pace. Delayed replacement is therefore very costly.
• There is a growing disconnect between budget cycles and replacement cycles due
to delays in vehicle availability. Fleets may have to plan to place vehicle orders
years in advance of the optimum replacement point.
• Regulations regarding sustainable vehicle purchases are constantly evolving.
Delaying replacement may force compliance purchases which will cost more.
The average age of the City’s fleet is 6.8 years which is within best practice parameters,
ensuring TCO is minimized.
Electrification. Delaying vehicle replacement will likely postpone the adoption of EVs and
meeting emissions targets, both of which are contrary to the City’s Strategic Plan and
CAP.
Vehicle Availability. Typically, an older fleet has higher downtime and lower vehicle
availability.
Business Continuity. Similar to the Status Quo option, there is little impact on operations
in shifting to a longer lifecycle.
Data. As per the Status Quo option, The City uses AssetWorks FA and the integrated Fuel
Focus system. The Fleet Manager has training and experience and is able to use the data
generated to make informed fleet management decisions.
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6.4 Lease Fleet Vehicles
Two leasing options were explored:
• a full service (maintenance lease) offered by Enterprise Fleet Management.
• a finance lease offered by Holman Fleet Management.
Fleet Management Companies (FMCs) may offer maintenance services. In the Enterprise
model, the client can continue to maintain or coordinate their own outsourced
maintenance, or Enterprise will provide this service for a flat monthly rate. That monthly
rate includes one tire change and all necessary Preventative Maintenance inspections
and work. Other FMCs, such as Holman (formerly ARI) will coordinate outsourced
maintenance, if desired, but offer no fixed monthly rate. Note that where the FMC
coordinates maintenance, they normally use national accounts which will be similar in
price to rates the City receives from their outsourced providers.
In order to have a specific sample to request pricing from leasing companies, we
identified the number of VEUs that are beyond the capacity of current staff to repair. We
then created a list of vehicles by number and type that equates to that number of VEUs.
We requested quotes for full-service and finance-only leases on this sample.
The total sample was 130 vehicles which totaled 253 VEUs. It included eight vans, nine
sedans, 52 SUVs and 61 pick-up trucks.
Service Level. Since only a portion of the fleet would be under a lease, service levels
would be consistent with Status Quo.
Cost. The cost of leasing is almost always more expensive than purchasing the vehicles.
In order to make like comparisons, we asked two FMCs for financing information on five
common fleet vehicles. The data received is indicative of the many factors that go into
lease pricing and the fact that quotes are refined between the client and the Lessor. The
prices reflected do not constitute an offer and are reflective of market conditions in
October/November 2023.
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Holman vs. Enterprise Cost Comparison: Selected Light-Duty Classifications
The key differences in the pricing offered by the two FMCs are the following:
• Capitalized costs (cap costs) upon which monthly lease payments are based are
significantly higher for Enterprise.
• The Enterprise pricing is based on 10% down while the Holman pricing is for the
entire cap cost.
• Both examples are for 60 months.
• The Holman pricing assumes no residual or resale value after 60 months while the
Enterprise lease includes residual values which can be applied to replacements.
• The lowest lease cost for each vehicle type is highlighted in green.
Overall, in terms of capital costs (excluding maintenance), the City would pay the invoice
price less incentives if purchasing these assets with cash. The least expensive option for
each of the vehicle types is highlighted in green:
Purchase vs. Managed Cost Comparison: Selected Light-Duty Classifications
Vehicle Purchase Holman Enterprise
2024 F-150 XL $ 35,919 $42,900 $ 39,705
2024 Ford Maverick XL $ 25,681 $30,720 Not Avail
2024 Kia Niro PHEV EX $ 34,928 $41,760 $ 46,889
2024 Chevrolet Colorado WT $ 29,351 $35,100 $ 33,978
2024 Toyota RAV 4 LE $ 27,574 $33,000 $ 26,660
In almost every case, leasing is more expensive than purchasing. As interest rates
increase, the difference between purchase and lease financing increases further.
The other component of cost is the maintenance of vehicles repaired in-house compared
to those maintained under a full maintenance lease with the Enterprise solution.
Hohlman
Vehicle MSRP
Invoice
Cost
OEM
Incentive
Lessor
Credit
Lease
activation Cap cost
Down pmnt
(10%)
Monthly
lease fee
Full
Maint fee
Equity at 60
months
Total Paid
less Equity
2024 F-150 XL 38,565$ 36,419$ 500-$ 718$ 100$ 35,301$ 715$ NA 42,900$
2024 Ford Maverick XL 27,215$ 26,136$ 455-$ 514$ 100$ 25,267$ 512$ NA 30,720$
2024 Kia Niro PHEV EX 35,615$ 34,928$ TBD 699$ 100$ 34,329$ 696$ NA 41,760$
2024 Chevrolet Colorado WT 30,695$ 29,351$ TBD 587$ 100$ 28,864$ 585$ NA 35,100$
2024 Toyota RAV 4 LE 29,825$ 27,974$ 400-$ 551$ 100$ 27,123$ 550$ NA 33,000$
Enterprise with 10%
down
2024 F-150 XL 41,072$ 4,107$ 898$ 108$ 18,282$ 39,705$
2024 Kia Niro PHEV EX 41,396$ 4,140$ 905$ 61$ 11,551$ 46,889$
2024 Chevrolet Colorado WT 29,851$ 2,985$ 657$ 108$ 8,427$ 33,978$
2024 Toyota RAV 4 LE 28,474$ 2,847$ 627$ 112$ 13,807$ 26,660$
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The Enterprise maintenance fee structure includes regular maintenance inspections, oil
changes, and wear items, as well as the parts and labor associated with those tasks.
However, this fee will only include one brake replacement and no tires. Maintenance Fees
specifically exclude repairs due to neglect, abuse or collisions, repairs to aftermarket
equipment, glass related repairs and body damage. Outsourced maintenance and repair
parts and labor that are not included in the maintenance fee and would be charged as a
direct ‘pass-through’ cost to the City with no mark-up.
Fleet’s existing In-House services include all PMs, repairs, inhouse and outsourced
maintenance, repairs, and all parts and labor regardless of reasons like neglect, abuse, or
collision.
Service Type In-House Enterprise
Maintenance
PM Inspection X X
Oil Change & Filter X X
Air Filter X X
Wiper Blades X X
Brakes X One Time
Tires X
Repairs
Glass Repair X
Body Repair X
Parts X
Labor X
Aftermarket Equipment X
Commercial Sublet X
Symptom Diagnosis X
The table below shows the per vehicle maintenance costs for a five-year period by vehicle
type. In-house costs shown are actual average costs from the fleet data provided by the
City.
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Five-Year Maintenance Cost Comparison (Per Vehicle)
Vehicle In-House Enterprise*
F-150 $9475 $6,480
Kia Niro PHEV $1905 $3660
Chevrolet Colorado $7,055 $6480
Toyota RAV 4 $4,310 $6720
*Five-year costs include only one brake job and no tires
The annual maintenance costs of the F-150 are approximately $600 more if maintained
by the City, and the Colorado is $115 more before accounting for tire changes, additional
brake work and body work. On the other hand, savings of $1,755 are evident over the five-
year life of a Kia Niro and $2,410 for a RAV 4 without accounting for additional savings
for brakes and tires. The Maverick is not included as it is not currently available through
Enterprise.
If the sample of 130 vehicles is considered, the following table reflects the approximate
costs to maintain these vehicles inhouse or through the Enterprise lease. Note that the
eight vans are excluded as we have no pricing information for that vehicle class from
Enterprise. The costs of the pick-up trucks show the actual distribution of F-150 (70%)
and Colorado trucks (30%).
Five-Year Maintenance Cost Comparison (Per Sample)
Vehicle Count In-House Enterprise
Pick-up Truck 61 $533,689 $395,280
Sedan 9 $ 17,145 $ 32,940
SUV 52 $224,120 $349,440
Total 122 $774,954 $777,660
The total of the five-year maintenance costs for the sample shows that the Enterprise
model is slightly more expensive across the fleet sample and provides for less services
than the in-house option.
Electrification. The buying power of FMCs may ensure access to EVs that the City may
not have been able to get. Also, with the increased capital cost outlay required to
purchase an EV, leasing may be the only option to pursue electrification in a timely
fashion.
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Vehicle Availability. The availability of vehicles would increase. If this was strictly a
finance lease, vehicles would be replaced at optimum lifecycles, ensuring the average
age of the fleet styed within recommended lifecycles and minimizing downtime.
Business Continuity. Some adjustment would be needed to incorporate the leased
vehicles and corresponding maintenance arrangements, but these adjustments would be
minimal.
Data. Arrangements with the leasing company can be made to ensure all data on leased
vehicles in integrated into the City’s AssetWorks system.
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7. Recommendations
The criterion and weights approved by the City were used to evaluate the options. This
resulted in the decision matrix shown below. Each option is ranked per criterion from 1
to 4 with 4 being the best. That rank is multiplied by the criteria weights to get a total
score. Finally, each option’s scores are totaled.
Status Quo Build Delay Lease
Weight Rank Total Rank Total Rank Total Rank Total
Service Levels 3 2 6 4 12 1 3 3 9
Costs 2 4 8 3 6 2 4 1 2
Electrification 2 3 6 3 6 1 2 4 8
Vehicle Availability 1 2 2 4 4 1 1 3 3
Business Continuity 1 4 4 2 2 3 3 4 4
Data 1 4 4 4 4 3 3 2 2
TOTAL 30 34 16 28
The scores show that the City should invest in increasing the capacity of their shop. It is
not the lowest cost option in the short term but will ensure service levels are maintained
or enhanced, and vehicle availability is sustained.
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Appendix A – Job Descriptions
A summary of the job descriptions for all fleet positions in Public Works appears below.
Position Title Key Roles and Responsibilities
Fleet Public Works
Superintendent
• Plan, direct and administer assigned functional and operational
management, administration, maintenance and/or inspection
programs. • Direct maintenance, repair, remodeling and replacement in assigned
functional areas.
• Respond to citizen and/or agencies or commissions complaints and
inquiries. • Develop and implement goals and objectives for operations.
• Ensure inspection programs of functional areas to determine work
programs that meet maintenance standards. • Develop, direct and monitor preventive maintenance program(s) and
associated maintenance schedules.
• Evaluate work schedules against performance and customer service
standards. • Ensure efficient systems for procurement of supplies, materials and
inventories. • Authorize equipment purchases. • Participate in budget preparation, capital improvement projects and
administration of budgets and exploration of alternative funding
sources. • Serve in the capacity of assigned Manager as directed.
Public Works Supervisor
• Plan, organize and supervise personnel in the maintenance of fleet. • Oversee the accuracy and maintenance of time, material and
equipment use records.
• prepare job estimates and establish priorities for technicians.
• Recommend the purchase of equipment and assist in the development
of specifications. • Ensure the maintenance of various records and prepare reports as
required.
• Ensure the adherence of safe work practices by field maintenance
personnel. • Coordinate field services maintenance activities with other city
departments, divisions, and sections, and with outside agencies.
Management Analyst
• Prepare budgets and provide ongoing analysis, recommendations and
monitoring. • Conduct surveys and perform research and statistical analysis on
administrative, fiscal, human resources and operational problems and
issues and make recommendations as appropriate. • Prepare and provide staff support on agenda bills. • Contract administration: prepare RFP’s, aid in analysis, negotiation and
vendor selection, administer contract.
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Position Title Key Roles and Responsibilities
Lead Equipment
Technician
• Lead, assign and inspect the work of equipment technicians and
participate in all associated work.
• Coordinate equipment maintenance activities with other city
departments, divisions and outside agencies. • Inspect, diagnose and locate technical and electrical malfunctions on
city automobiles, trucks, fire apparatus, water utility pumps, grounds
maintenance equipment, and a variety of maintenance and
construction equipment and their component systems. • Determine extent of necessary repairs for further repair work and
scheduling; estimate parts and materials costs; recommend contract
work as necessary.
• Overhaul, repair, maintain and adjust a wide variety of gas and diesel
powered automotive, truck and heavy equipment and their component
and computerized systems. • Operate and maintain a complete set of hand, power, and shop tools
and computerized diagnostic and test equipment used in the
automotive and truck repair trade. • Maintain work, time, material and equipment maintenance logs and
records; enter data into and retrieve, print and generate vehicle,
equipment, and work order reports from computer information system. • Respond to emergency service calls for repairing or towing equipment
that has broken down away from the shop.
Equipment Technician I
and II
• Inspect, diagnose and locate technical and electrical malfunctions on
city vehicles and equipment. • Overhaul, repair, maintain and adjust a wide variety of gas and diesel
powered vehicles and equipment. • Operate and maintain a complete set of hand, power, and shop tools
and computerized diagnostic and test equipment. • Perform smog inspections and repair smog inspection failures. • Perform general maintenance on cars, trucks and other equipment. • Respond to emergency service calls for repairing or towing equipment
that has broken down away from the shop. • Fabricate and modify parts and equipment. • Perform minor welding, braising, soldering and cutting operations.
• Pick up and deliver vehicles, parts and supplies as required. • Maintain work, time and material logs and records. • Assist other technicians with major technical repairs as required. • Observe safe working practices; maintain a clean and orderly work and
shop area.
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Position Title Key Roles and Responsibilities
Accounting Technician
• Perform a variety of complex technical tasks involving the utilization of
automated accounting and/or technical recordkeeping systems,
including but not limited to, the development of forms and
requirements for data entry, the review and checking of data prior to
data entry, assist in the assignment of work to co-workers, assignment
of account classification codes and preparation of specialized reports. • Participate in and/or provide lead responsibility in a variety of
accounting activities, including accounts payable, accounts receivable,
payroll and the preparation of departmental reports, audit of bills and
invoices, balancing of cash drawer, and preparation of deposits. • Interpret state and federal codes, laws, the city Ordinance, and
procedures that relate to the assigned areas and suggest
recommended actions.
• Design, review and check records, forms and other documents for
accuracy, completeness and conformance to rules and regulations. • Respond and resolve citizen complaints and requests for information.
• Prepare and maintain electronic and manual records and files related
to assignment. • Prepare correspondence as necessary. • Assist in providing work direction and training to co-workers as
assigned. • Assist in the development and implementation of systems and
procedures.
• Perform miscellaneous office and clerical duties as assigned.
Warehouse Technician
• Receive and unpack materials, supplies, parts and equipment. • Purchase and coordinate the storing of a wide variety of material,
supplies, parts, tools and equipment. • Work with operating staff to determine needs. • Work directly with vendors to determine stock availability. Keep
inventory stocked to minimum levels. • Source materials and equipment based on pricing, availability and
services offered by vendors. • Prepare cost estimates for materials for construction, maintenance and
repair work. • Conduct inventory and audit procedures to measure utilization,
inventory costs and loss of materials at warehouse sites. • Process orders and maintain inventory transaction records in the
computer database. • Maintain accurate records and files, including manual and
computerized inventory control systems. • Enter purchase order requisitions into the City’s financial system,
ensuring that departments are billed correctly for their purchases. Verify
orders have been received before invoices are paid. • Maintain a log of surplus materials and equipment.
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Position Title Key Roles and Responsibilities
Maintenance Assistant
• Assists with the maintenance of vehicles or facilities including building
and minor electrical repair, water works and streets. • Assists with special events, including driving trucks, supervising
volunteers. • Moves stage pieces and equipment from storage cars to concert site. • Sets-up /retrieves traffic control signs. • Assist public with loading chairs on shuttle buses.
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Appendix B - Customer Service
Customers/Function A B C D E
Communication. Fleet communicates about
the status of items in the shop and gives
timely updates of work completion.2.00 4.00 5.00 4.50 4.00
Customer Service. Vehicle drop-off and pick-
up is convenient, organized and handled in a
professional manner.3.00 4.25 5.00 5.00 5.00
Preventive Maintenance. Fleet has a PM
plan and ensures PMs are up to date on all
vehicles.3.75 3.00 5.00 5.00 4.00
Vehicle Availability. Vehicles are available
to meet operational requirements.DNR DNR 5.00 5.00 5.00
Timeliness of repairs. Vehicles are repaired
in a timely fashion (major repairs 7 days,
minor within 48 hours)2.00 3.00 5.00 4.50 4.00
Quality of repairs. Comebacks for the same
issue should be very rare.4.25 4.50 5.00 5.00 4.00
Parts. When vehicles go for PM, the regular
parts are on hand. Adequate and correct
parts kept in inventory. System in place to
get parts as needed.4.00 3.50 5.00 DNR 5.00
Technicians. Shop has adequate, trained
techniciens for the volume of work.4.00 4.00 5.00 4.50 2.00
Acquisition Process. Customers are
consulted throughout the process and the
outcome meets their operational needs.5.00 4.20 5.00 4.00 4.00
Facility. The location of the shop and
operating hours meet customer needs.5.00 3.70 5.00 3.50 3.00
Fuel. The location of fuel is convenient and
good control measures are in place.5.00 2.00 5.00 5.00 5.00
3.80 3.62 5.00 4.60 4.09
FSD Wash bays. The location of wash bays
is convenient and their availability meets
customer needs.1.0 2.0 5.0 2.0 N/A
Other Wash bays. The location of wash bays
is convenient and their availability meets
customer needs.1.0 5.0 N/A
Cost. Capital and operating costs of fleet
are transparent and fair.3.5 N/A 5.0 4.0 4.0
May 7, 2024 Item #8 Page 40 of 52
Customers/Function Utilities/Water
Communication. Fleet communicates about
the status of items in the shop and gives
timely updates of work completion.
Sometimes it is hard to get updates and customer is not
advised when job is completed and vehicles are ready for
pickup. Drivers find out by accident when they go for fuel
and see vehicle in ready line. There is no automated
email, text or call from fleet.
Customer Service. Vehicle drop-off and
pick-up is convenient, organized and
handled in a professional manner.
The drop off experience varies. If it is lunch time or
everyone is busy the drivers will fill in a paper and leave
keys on the counter .Other times someone is there to
properly receive the vehicle.
Preventive Maintenance. Fleet has a PM
plan and ensures PMs are up to date on all
vehicles.
There is a PM schedule. PMs are usually done on time.
However, additional maintenance that results from the
PM may take a very long time and status is not
communicated, especially for HD equipment.
Vehicle Availability. Vehicles are available
to meet operational requirements.
There are times when loaners or rentals are needed as
vehicles are in the shop.
Timeliness of repairs. Vehicles are repaired
in a timely fashion (major repairs 7 days,
minor within 48 hours)
Major repairs go beyond 7 days.
Fleet prioritizes Jesse’s vehicles so turn them around
more quickly.
Quality of repairs. Comebacks for the same
issue should be very rare.Very good.
Parts. When vehicles go for PM, the regular
parts are on hand. Adequate and correct
parts kept in inventory. System in place to
get parts as needed.
Department has lots of special equipment that needs
specialty parts. Overall, have reasonable parts on hand
and a system to get specialty parts.
Technicians. Shop has adequate, trained
techniciens for the volume of work.
On training, there have been issues with hybrids and
techs seem to need training.
Good quality work. Not enough techs. The number of
vehicles has increased (more fire) but fleet does not get
approved for more mechanics.
Acquisition Process. Customers are
consulted throughout the process and the
outcome meets their operational needs.
Timing for the replacement process is long. Possibly
need more staff and also need more proactive
communication. A monthly acquisition update would be
good.
Facility. The location of the shop and
operating hours meet customer needs.Yes.
May 7, 2024 Item #8 Page 41 of 52
Fuel. The location of fuel is convenient and
good control measures are in place.
Yes for conventional fuel but not great for charging. Need
fast charging where vehicles are kept.
Wash bays. The location of wash bays is
convenient and their availability meets
customer needs.
All gone away. Have to go to a commercial car wash.
Does not work for bigger vehicles. Not allowed to wash
vehicles in yard. Can access bay with floor drain for large
vehicles.
Cost. Capital and operating costs of fleet
are transparent and fair.
Capital is fair and transparent. Take actual acquisition
cost, billed ten years to replace. Does not include outfit
costs or inflation. Always coming up short and making
up the difference in auction revenue. Should be a more
planned way by considering auction revenue.
Operating – get spreadsheets annually on how rental
rates are charged. No breakdown of fuel by vehicle.
Assume 1600 hours of use per year for all vehicles.
What are the main strengths of services
provided by Fleet?
Techs are helpful and responsive. They will help you out
to meet op needs.
Bradley is data-driven, excels in researching BP. Example
is fleet electrification. Helps Managers do their jobs
better.
What areas of fleet-provided services need
improvement?
Pool vehicles – users can use training on EV, HEV and
BEV
Better comms and reasonable repair times. Updates
when vehicles are done.
More techs so they can make repairs on a timely basis.
May 7, 2024 Item #8 Page 42 of 52
Police
There is still some room for improvement. Across the
last 7 years it has improved significantly. Automatic
notifications would be helpful.
Fleet is eager to work on vehicles. Very responsive with
the steps in the process. Great job meeting Police needs,
they struggle with workflow. Sometimes rely on external
vendors when inhouse service would be faster.
Fleet communicates a schedule but officers miss
scheduled repairs.
Good overall.
This is subjective based on the type of repair. Fleet does
a reasonable job of triage but needs a SLA to prioritize
Police.
They take a lot of pride and spend money required to
keep vehicles in service. Thankful for the quality and the
rating varies depending on the tech.
With the new Hybrid PIUs there were a lot of parts delays.
Supply Chain issues.
Not enough staffing to meet police demand. Current
staffing levels are not sustainable.
Brad does a really good job providing Police what they
need. The Finance Department holds up the process.
The location and hours of opertion are great. The facility
is lacking and needs more equipment, a training room,
and a front desk. Currently customers walk right in to the
shop and interrupt a tech when they drop off vehicles.
May 7, 2024 Item #8 Page 43 of 52
Fuel 40 - 45 years old, work intermittently. People learn
which pump will work with their vehicle.
Only two locations.
Yes they are.
Interpersonal skills are off the chart good. They care
about what they do and you cannot put a price on that.
Relationships are incredible. High Trust.
Staffing and additional training.
May 7, 2024 Item #8 Page 44 of 52
Parks
They go above and beyond whether they are researching
options, great communication and email notice when
repairs are complete.
Doesn’t see where they can do much better.
no comments
no comments
Haven’t heard any issues
Never an issue, no come backs.
Usually on hand. Chameleon parts not on hand, bobcat
not on hand. Wait for inordinate time for repairs
no comments
no comments
12 minute drive, convenient especially compared to OK
City
May 7, 2024 Item #8 Page 45 of 52
No comments
No comments
Service is excellent and is right sized. Costs are
competitive.
Leadership, Brad runs a great shop, you can tell he loves
what he does, does it with a smile, great communicator.
Meticulous and efficient.
None that he can think of.
May 7, 2024 Item #8 Page 46 of 52
Public Works
More automated system for service completion or
calendar would make this more efficient.
They’re great.
No break in the system to his knowledge.
There have been no breaks in service because of PM or
repairs.
Above expectations without statistical feedback.
No quality control issues.
Not familiar with the parts side, hasn't had any problems
brought to his attention.
Doesn't know the details, assumes the technicians are
skilled and qualified.
Pretty consistent.
Operating hours are sufficient, location is inconvenient.
May 7, 2024 Item #8 Page 47 of 52
EV charging is adequate. Fuel Island operation is
satisfactory.
We pay for washing out of our budget. We get carwash
tokens for the vendor down the street.
Ddoesn’t see it necessarily, an analyst does but Bradley
walks them through all of their situations.
Direct, great customer service, response time is
excellent, I have a lot of confidence in fleet.
PM scheduling calendar??? Maybe. (He’s a little
removed from the process.)
May 7, 2024 Item #8 Page 48 of 52
Fire
Gotten a lot better, weekly update, Need more phone
conversations with on duty crew. They call Ben instead
of the station when something is complete. Expedites
turn around.
Couldn’t be better other than expected completion times.
They do have a plan but the communication about late
PMs is lacking. Call or email Dept head and Ben when
PM is late. They have a calendar they put out.
Fire is prioritized. Better than neighboring fire
departments.
Fire equipment is different than most vehicles. Delays
are parts or contract related.
There are some repeat repairs, where they cannot
duplicate the problem or experience the driver’s concern.
They do a great job
They need more shop staff to be certified, and more
people with class A license.
Fire is supported as best as could be done. Bradley has
many responsibilities, could use help.
Location is good, but facility needs to be bigger with
more bays.
May 7, 2024 Item #8 Page 49 of 52
Convenient for FD old school pumps but work.
Don’t even know how to use it, need a commercial set up
with multiple bays,and hot and cold water.
The interviewee is not getting the reports but they may
be going to an analyst.
Employees are very friendly, open minded and willing to
help. They are creative and overcome obstacles.
Fleet needs more staff, including techs. This would
improve the timeliness of other departments getting
work done. A reception type person would be good to
stop people who need service from interrupting
technicians.
May 7, 2024 Item #8 Page 50 of 52
Appendix C - VEU Calculator
Unit Type Count VEU's / Unit Total VEUs Maint Hours
Classification Count VEU/asset Tot VEU
Cart/ATV 5 0.5 2.5 26.25
Equipment MD 8 3 24 252
Equipment HD 17 5 85 892.5
Fire Aerial 2 8 16 168
Fire Apparatus 13 7 91 955.5
Fire Ambulance 9 6 54 567
Generator/Pump/Motor 7 0.25 1.75 18.375
Motorcycle 14 1 14 147
Patrol Pickup 3 3 9 94.5
Patrol SUV 55 3 165 1732.5
PD - Armoured Vehicles 1 5 5 52.5
PD - Control Center 2 5 10 105
Sedan 31 1 31 325.5
Sign / Barrier 12 0.25 3 31.5
SUV 84 2 168 1764
Sweeper 2 10 20 210
Trailer 18 0.5 9 94.5
Truck LD 92 2 184 1932
Truck MD 30 3 90 945
Truck HD 9 5 45 472.5
Van 14 2 28 294
Watercraft 3 2 6 63
Total 431 1061.25
May 7, 2024 Item #8 Page 51 of 52
1061.25 Total VEU's
Hours per VEU
10 Baseline Hours per VEU
0 Adjustment for fleet age
0 Adjustment for utilization levels
0 Adjustment for operating environment
0 Adjustment for facility and tools
0 Adjustment for parts support
0.5 Adjustment for systems integration
10.5 Total Hours per VEU
11143.1 Baseline Total Hours Needed
Technicians Needed
2080 Total Annual Paid Hours
70%Percentage Productive Hours
1456 Productive Hours per FTE
7.7 Total Filled FTE's Needed
FTE % Productive Time Spent on Floor Authorized Position
0.5 50%1 Lead Technician
2.0 100%2 Heavy Duty Technician
2.0 100%2 Light Duty Technician
4.5 Current Authorized FTE's 5.0
15%Percentage Outsourced (hours)1671.47
6.5 Adjusted Filled FTE's Needed
2.0 FTE Shortage
May 7, 2024 Item #8 Page 52 of 52
City Fleet Update
Bradley Northup
Public Works Superintendent, Fleet
May 7, 2024
1
{city of
Carlsbad
Agenda
FLEET OVERVIEW
ECONOMIC & OPERATIONAL IMPACTS
FLEET PROJECTS
COST SAVINGS ANALYSIS (MATRIX REPORT)
NEXT STEPS & INITIATIVES
ITEM 8: State of the City Fleet
{city of
Carlsbad
2,147,000 miles traveled
264,332 gallons of fuel
consumed
FL
E
E
T
O
V
E
R
V
I
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W
490 vehicles &
equipment
(Equivalent to 1,061 passenger
vehicles)
2390 metric tons of
greenhouse gases
Average age = 7
3
{ City of
Carlsbad
Internal service funds
Administrative Order No. 3
Maintenance rental rate
Advocacy & collaboration
Continuous process review & improvements
ITEM 8: State of the City Fleet
Best Practices ~ ~-
Inflation & Supply Chain
Fuel prices stabilizing but still elevated
New vehicle pricing concessions down 90%
Vehicle production down 20%
Factory order allocation/restriction
Widespread delays
ITEM 8: State of the City Fleet
Ec
o
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o
m
i
c
a
l
I
m
p
a
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t
s
$
How vehicles are used - Shared/Pool
Available staff labor
Fleet vehicle retentions & additions
Costs & inflation
Regulatory mandates
ITEM 8: State of the City Fleet
Op
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a
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i
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a
l
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p
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s
Fleet Operations
~
l(o O o]I
Fleet Additions & Retentions
6916 7644 7280 7280 8008 8008
1355 918 1290 2016 1378 2288
5000
6000
7000
8000
9000
10000
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24
Labor hour impact
Labor Available Increased Labor Required
391 412 427 428 445
490
350
370
390
410
430
450
470
490
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24
Additions & retentions
Approved in Budget Capital Outlay Council Resolution Direct Purchase by Dept Mid-Year Donation■ ■ ■ ■ ■ ■
■ ■
ITEM 8: State of the City Fleet
Re
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p
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State regulation: Advanced Clean Fleets
•Affects vehicles operated in California
•Class 2b through Class 8 (8,500 pounds and up)
•Fire & Police vehicles exempt
•50% of fleet purchases beginning in 2024
•100% of fleet purchases beginning in 2027
•Carlsbad fleet = 58 vehicles affected
8
Vehicle Replacement Outlook
$1,111,991
$148,003
$80,378
$117,728
$758,508
$1,017,300
$67,833
$348,268
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
FY25 SP ACF FY26 SP ACF FY27 SP ACF FY28 SP ACF
Estimated Vehicle Costs & Replacement Fund Forecast
PURCHASE ESTIMATE ACCUMULATED FUNDS ESTIMATED DEFICIT
~
- -
■ ■ ■
State & Federal Incentives
$82,500
$120,000
$90,000
$240,000
$60,000
$360,000
$82,500
$280,000
$22,500
$45,000
$67,500
$52,500
$0 $250,000 $500,000
FY25 SP
FY25 ACF
FY26 SP
FY26 ACF
FY27 SP
FY27 ACF
FY28 SP
FY28 ACF
Potential state & federal incentives
Federal IRA Max State HVIP Max
11
3
12
6
8
9
11
7
FY25 SP
FY25 ACF
FY26 SP
FY26 ACF
FY27 SP
FY27 ACF
FY28 SP
FY28 ACF
Zero emission vehicles
purchase quantity
I -I
~
I -I
■ ■
Internal process reviews – Matrix
Investments in fleet software – Smart apps, asset analytics, charge management
Investments in technology (GPS, telematics)
Expanded communication with departments & drivers
Infrastructure – Fleet garage re-model / EV charge depot
ITEM 8: State of the City Fleet
Co
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11
□
PROJECT – FLEET REMODEL
2023
September 2023
City Council awarded
design contract
July 2024
City Council asked to
authorize bidding
October 2024
City Council asked to award
construction contract
Summer 2025
Construction to be
complete
20252024
May 2024
Submit applications for
permittingFl
e
e
t
F
a
c
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l
i
t
y
R
e
-Mo
d
e
l
12
2023
November 2023
Phase 1 completed
Two chargers live
September 2025
Phase 2 complete
20252024
January 2024
Amended easement
Fall 2024
Phase 2 completed
12 chargers live
2026 2027
September 2026
Phase 4 Complete
September 2027
Phase 5 Complete
EV
C
h
a
r
g
i
n
g
D
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p
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t
2028
13
Matrix Report
Matrix approach – profile, review, assess
Surveys of user departments
Identify options & decision criteria
Exploration of cost savings - lease vs. purchase
Cost benefit analysis & recommendations
14
~
l[o Q oJI
Surveys of user departments
GOOD/GREAT
•Vehicle availability
•Quality of repairs
•Customer service
•Acquisition process
NEEDS IMPROVEMENT
•Timeliness of repairs
•Communication
•Number of technicians
•Facility
Matrix Report
SURVEY CATEGORIES
•Communication
•Preventive maintenance
•Timeliness of repairs
•Parts
•Acquisition process
•Fuel
15
•Customer Service
•Vehicle Availability
•Quality of repairs
•Technicians
•Facility
Approach - profile review & assessment
ASSESSMENT
•City & fleet policies are strong
•Vehicles are within industry standards for age
and lifecycles
•Organizational shifting to electrification
•Preventative maintenance compliance & repair
times falling behind
•Staffing & facility constraints
Matrix Report
16
Options & Decision Criteria
Matrix Report
OPTIONS IDENTIFIED
•Status quo
•Delay replacement
•Expand services
•Lease – with/without maintenance
17
Options & Decision Criteria
Matrix Report
18
Service levels
30%
Costs
20%Electrification
20%
Vehicle
availability
10%
Business
continuity
10%
Data
10%
Cost benefit analysis
L________.
Matrix Report Options
19
ITEM 8: State of the City Fleet
· atrix Rank/sco1re (40
Option P1rogram
reco1mmendation po1int max)
0 1 am ta I1 status quo 0 30
2 Dellay ve 1 clle rep ~aceme 1 t 0 16
3 Ex cHl serv~ce capac11ty YES 3.4
0 Lease opt~o 0 28
Fleet Next Steps
Add additional workspace – Remodel @ 90%
Eliminate or reduce underutilized vehicles
Increase access to vehicles - Consolidated motor pool
EV conversions - Capitalize on state, federal incentives
Utilize upgraded software to advance initiatives
20
[O[j
National Recognition
8th Place
21
{city of
Carlsbad
Driven By You
THANK YOU!
22
{city of
Carlsbad