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Agenda 05/05/2015 W (Fleet Operations) BCC WORKSHOP MEETING AGENDA MAY 5, 2015 COLLIER COUNTY Board of County Commissioners i. r *toad' WORKSHOP AGENDA Board of County Commission Chambers Collier County Government Center 3299 Tamiami Trail East,3rd Floor Naples FL 34112 May 5,2015 1:00 P.M. Commissioner Tim Nance,District 5-BCC Chair Commissioner Donna Fiala,District 1-BCC Vice-Chair;CRAB Chair Commissioner Georgia Hiller,District 2 -Community&Economic Development Chair Commissioner Tom Henning District 3-Public Safety Coordinating Council Chair Commissioner Penny Taylor,District 4-TDC Chair;CRAB Vice-Chair 1. Pledge of Allegiance 2. Fleet Maintenance Operations 3. Public Comment 4. Adjourn Notice: All persons wishing to speak must turn in a speaker slip. Each speaker will receive no more than three(3)minutes. Collier County Ordinance No.2003-53 as amended by Ordinance 2004-05 and 2007-24,requires that all lobbyists shall,before engaging in any lobbying activities(including but not limited to,addressing the Board of County Commissioners),register with the Clerk to the Board at the Board Minutes and Records Department. Collier County Fleet Management Department O OVERVIEW AND CONSIDERATIONS 0 CURRENT: OVERVIEW Current: Mission Statement 0 "To provide efficient, effective, and customer-oriented centralized fleet services" Current: Operations 0 • Internal Service Fund o Labor rates(allocated based on previous year hours) o Parts/Sublets (surcharge) o Fuel (surcharge) • Vehicles owned and operated by Divisions • Centralized fuel and maintenance Current: Fleet Inventory (2898) 0 • Sedans and light trucks (534) • Medium duty trucks/box vans (142) • Heavy equipment (107) • Buses (25 full size; 22 mini-buses) • Ambulances (42) • Fire Apparatus & Support (36) • Small engines/equipment/trailers (1990) Current: Services Provided 0 • Acquisition and disposal • Replacement planning • Vehicle and equipment maintenance and repair (+7,900 work orders/year) • Fuel services (-1.25 million gallons, 4 locations) • Towing and roadside assistance (contract admin) • Billing (FASTER -, SAP) • Parts inventory management • Asset management (FASTER) Current: Outsourced Services 0 • Quick oil change/PM-A services • Auto glass/windshield replacement • Body and collision repairs • Carwash services • Tire service calls • Towing services • Industrial generator repair Current: Fleet Locations 0 • Main Shop - County Barn (9 techs, 7 admin, 3 parts techs) • Bus Depot — Radio Road (4 techs) • Road and Bridge — Davis Blvd (2 techs) • Immokalee (1 tech) • Mobile fuel trucks (2 trucks stationed at County Barn) • Total Assets: Acquisition $15.8M ($13.3 Building) Book Value $11.3M ($10.4 Building) NOTE: Our technicians hold a combined 24 advanced or master ASE/EVT certifications Current: Labor Rates 0 • Collier County Fleet $83*/hr • Private Sector (Collier County) • Cars/light trucks $97-$125/hr • Heavy Equipment $99-$140/hr • Small Equipment $39-$100/hr *Fleet rate fully burdened except building acquisition/depreciation 0 CONSIDERATIONS Considerations : Hertz/Donlen Meeting 0 In early January 2014, staff met with leaders of Hertz and their subsidiary Donlen to determine whether partnership opportunities existed As a result of that meeting, Michael O'Rourke, VP of Sales and a team of his co-workers met with and toured our facilities and reviewed our performance metrics. Considerations: Donlen/Hertz Recommendations 0 • Implement telematics to encourage behavior changes • Implement lease program for vehicles to reduce lifecyles and number of spare vehicles • Continue exploring use of Compressed Natural Gas (CNG) as infrastructure becomes available "The great news is that your maintenance department is keeping it all together with a world class operation and the availability of multiple spare assets." Considerations: Donlen Recommedation/Telematics 0 Telematics devices collect and transmit data regarding vehicle location, speed, idle time, fuel consumption, etc for the purpose of maximizing efficiency and encouraging good driving behaviors Considerations: Telematics 0 • Potential Benefits o Increase fuel economy through better habits o Identify risky behaviors for improved safety o Reduce maintenance cost by changing inefficient behaviors o Increase driver productivity • Cost o Hardware/Software ($35,000-$55,000 for 600 vehicles) o Reporting and Monitoring Considerations: Donlen Recommend tion/Vehicle Leasing • Leverage finance leasing on part or all of the fleet to maintain established cycling parameters • Reduce life-cycle from six to four years • Reduce number of spare vehicles (buses/ambulances) Considerations: Budgetary Policy (Capital vs. Debt) 0 • Total Cost of Ownership o Donlen assumptions • $30,000 purchase price • 30,000 miles per yr • +$5,000 maintenance per yr o Actual averages • $22, 000 purchase price • < 12,000 miles per yr • <$2,000 maintenance per yr • Spare Ratio 30% (6 buses of 25); 20% (6 ambulances of 36 + 6 being remounted) Considerations: Leasing Opportunities • Sedans and light trucks (534) • Medium duty trucks/box vans (142) • Heavy equipment (107) • Buses (25 full size; 22 mini-buses) • Ambulances (42) • Fire Apparatus & Support (36) • Small engines/equipment/trailers (1990) Considerations: Vehicle Leasing • Advantages • Preserve capital funding • Pay for use of vehicle vs fully burdened ownership • Quickly reduce age of fleet (Higher LOS) • Disadvantages • Net present value of money • Less control/flexibility (Budgeting becomes fixed not flexible) Perpetual financial obligations • Loss of advantageous/competitive government pricing Considerations: Outsourcing Opportunities • Acquisition and disposal • Replacement planning • Maintenance and repair • Fuel services • Towing and roadside assistance • Billing • Parts inventory management • Asset management Considerations: Benefits and Drawbacks 0 Reasons to consider outsourcing • Cost savings • Improved performance • Increased responsiveness Potential Drawbacks • Cost increases at contract end • Lack of control/flexibility • Lack of continuity Considerations: Staff Recommendation 0 • Before considering making further decisions, staff recommends using an independent management and financial consultant to: o Conduct an efficiency and effectiveness study Review fleet operational competitiveness Consider BMPs and facility adequacy h Make recommendations for reducing cost, increasing efficiency, and improving responsiveness to agency/customer needs o Provide a third party analysis on outsourcing FLEET MANAGEMENT DEPARTMENT GENERAL OVERVIEW Description of Services:The Fleet Management Department provides centralized fleet and fuel management services to County government departments and agencies including maintenance and repair,technical support services,fuel operations, and vehicle and equipment acquisition and disposal. Annually, over 7,900 maintenance/repair work orders are completed on the 2,600-plus vehicles and motorized equipment items, and more than 1.25 million gallons of fuel are dispensed to both internal and external agencies. The County's fleet includes: • Sedans and light trucks (535) • Medium duty trucks/box vans (144) • Heavy equipment (107) • Buses (24 full size; 22 mini-buses) • Ambulances (40) • Fire Apparatus (12) • Emergency Support-sedans,4X4,command units (23) • Small engines/equipment/trailers (1,763) Revenue Sources: Fleet Management operates as an internal service fund. Customers are billed via inter-governmental billing for vehicle/equipment maintenance and repair(labor, parts, sublets), fuel, motor pool rentals, and car washes at rates calculated to cover actual cost plus overhead. Miscellaneous revenues are generated from such activities as auction and scrap metal sales. Procedures/Methodology For Customer Charges: Departments are billed monthly for services provided each month. Labor is charged on an annual allocated basis divided into 12 equal monthly payments. Allocated labor is determined by multiplying the percentage of Fleet's total billable hours used by a department the previous year by the total projected billable hours for the budget year. Parts and sublets are billed monthly based on actual usage on work orders closed that month. Fuel, car washes, and motor pool rentals are billed monthly based on actual usage that month. Billings are detailed by individual vehicle/equipment in the above categories and then consolidated by category for overall monthly totals. How Rates are Determined: Rates are determined to cover Fleet Management's costs (including administration and overhead) in each category of charges (labor, parts, sublets,fuel,car washes, and motor pool rentals). Labor is allocated annually as stated above. A markup rate is applied to parts and sublets to cover the overhead of those operations. Likewise,fuel is marked up to cover the overhead costs of fuel operations. FY2015 SCHEDULE OF RATES Labor $83/hr. $78/hr. Small engine. Parts 28.5% markup Sublet 23.5% markup Fuel $0.165 per gallon markup Motor Pool $0.49/$0.59/$0.66 per mile based on vehicle type Car Washes $4.00 each LOCAL/REGIONAL AREA REPAIR LABOR RATES Everglades Farm Equipment Small handheld &2-cycle equipment $39/hr Hitch &Weld of Naples Trailers/Towing/Welding/Fabrication $60/hr Capri Lawn Turf/Landscape Equipment $75/hr Doria's Welding General Welding/Fabrication $75/hr Custom Hitch &Trailer of Naples General Repairs $96/hr Westco Turf Turf, Golf, Landscape Equipment $99/hr Custom Hitch&Trailer of Naples Welding& Fabrication (Trailers/Towing) $116/hr Ft. Myers Freightliner Diagnostic-Technical $ 122/hr Wallace International Diagnostic—Technical (Medium/Heavy truck) $123.50/hr Collier Tire Commercial Center Cars, Light/Medium/Heavy trucks $ 90/hr Coastland Auto Service Cars, Light/Medium duty trucks $ 95/hr Auto works/Muffler works Cars, Light trucks $97.50/hr Voigts Service center Cars, Light/Medium duty trucks $100/hr Tamiami Ford Cars, Light trucks $125/hr Tamiami Ford Diesel engines (up to F550) $140/hr Everglades Farm Equipment General lawn,turf,small equipment $78/hr Creel Tractor Tractor, Ag,Turf, Construction $80/hr Everglades Farm Equipment Construction equipment(Skid Steer, Excavator) $84/hr Kelly Tractor/CAT Construction, Medium to Heavy Equipment $94/hr Florida Coast Equipment/Kubota Construction, Medium to Heavy Equipment $97/hr Nortrax SE Medium to Heavy Construction/Forestry $99/hr Ten-8 Fire Ambulance/Fire truck&Apparatus $98/hr Hall-Mark Fire Apparatus Ambulance/Fire truck&Apparatus $99/hr Wallace International General mechanical-Medium/Heavy $105/hr Ft. Myers Freightliner General mechanical-Light/Medium/Heavy truck $125/hr ORGANIZATIONAL STRUCTURE Fleet Management Director (Currently Interim) Fleet Senior Maintenance Operations Supervisor Analyst (Currently Interim) I # Parts Manager One Fiscal One Accounting Technician Technician Fleet Sery ices Shop#I3801 Shop#2425Sgt. Shop#34800 Shop#48300 Technician County Barn Rd Joelones Rd, Davis Blvd Radio Rd County Immokalee Barn Rd Two Parts One Vacant One Principal Technicians Principal One Principal Technician One Principal Technician Technician Technician (inter im),SIo Journeyman/Ma ster Technicians, Two Pending New hires,One One Journey man Three Apprentice Technician Journeyman/Master Technician, technicians Fleet Management has a total of twenty-six employment positions (Three of these twenty-six are vacant at this time pending new hire and Interim positions.) LOCATIONS,SERVICES,SUBLETS Fleet Management's mission is to provide excellent service and quality repairs with minimal down time to keep Collier County's fleet operating in a safe and efficient manner and we are proud to have been named one of the nation's Top 100 Fleets for the past nine consecutive years. We provide various services and repairs at all levels,from general maintenance, quick oil changes, safety inspections,to diagnostics, heavy engine and drive train repairs and electrical repairs and despite the aging of our fleet due to economic conditions, continue to maintain at or better than 95%availability. In fact, as part of its review, Donlen (A subsidiary of the Hertz Company)said, "The great news is that your maintenance department is keeping it all together with a world class operation." In addition to repairs and preventive maintenance,we provide installations of add on equipment,welding and fabrication services, and up- fits. Our highly trained staff stays current with Original Equipment Manufacturer software and service information and updates. In addition to Fleet Management's "In house"services,where it is cost effective,we sublet some of our services and repairs. Sublet repairs include: • Quick oil changes/PMA services • Auto glass/windshield replacements • Body and Collision repairs • Carwash services • Tire service calls • Towing services • Industrial generator repair Fleet Management has four service facilities throughout Collier County. • 2901 County Barn Rd (Main Facility) Providing service for all county Departments, including EMS and Isle of Capri &Ochopee Fire districts. • 425 Sgt.Joe Jones Rd, Immokalee (Immokalee facility) Providing service to the Eastern portion of Collier County and Immokalee areas. • 4800 Davis Blvd (Road & Bridge) Providing service for the large fleet of Road department vehicles and machinery. • 8300 Radio Road (Collier Area Transit)Providing service for Collier County's fixed route Transit system and also the Para Transit system Internal fuel capabilities are available at: 1. 2901 County Barn Rd. Naples 2. 4800 Davis Blvd (Road Maintenance Facility) 3. 32020 Tamiami Trail E.(Carnestown Sherriff's Sub-Station US41&SR29) Everglades City 4. 425 Sgt.Joe Jones Rd Immokalee In addition to the fuel sites Fleet Management also operates Two Fuel Tanker trucks: 1. 2,000 Gallon unit, stationed at the Collier Area Transit facility for Transit bus fueling. (Until completion of fuel Island at the Collier Area Transit facility.) 2. 4,500 Gallon unit Stationed at 2901 County Barn Rd,for emergency use, remote site, or department requested fueling services. Fleet Management manages a fuel card program for out of county travel and emergency fueling requirements that may come up during hurricanes and other local emergencies. The current account is with Wright Express (WEX).The card allows for fueling at 90%of the US retail stations, and offers road side assistance similar to AAA. Fleet Management also has a self service carwash located at the 2901 County Barn road facility. The Fuel dispensing/monitoring system (TRAK) monitors and records all fuel transactions and carwash transactions from all stationary sites.TRAK reads the vehicle number and operator ID, by the use of chipped keys assigned to the specific vehicle/equipment and operator/department.The information is then loaded into our Faster Fleet Management Software for billing and usage information. Fleet Management is very competitive in fuel prices.The current unleaded prices in our area are from $2.23 (Sam's/Costco)to$2.59 (Exxon at Oil Well and Immokalee rd.) Diesel prices are from $2.89 to $3.29 in our area. (verified on 1-20-2015 www.floridastategasprices.com) Our fuel cost per gallon for Department use is$ 2.215 Unleaded and $2.515 Diesel. EMPLOYEE CERTIFICATIONS Eleven of the current fourteen Fleet Technicians hold ASE certifications,with two others pending testing/recertification. There is one Apprentice Technician position that does not require ASE certifications and three vacant Journeyman/Technician positions at this time (two of the three positions are pending new hires). In addition to our Technicians, our management staff also holds current ASE certifications or Master Technician certifications. Many of our Technicians are ASE Certified and/or ASE Master Certified in multiple areas of their field. Our Technicians continue to achieve additional ASE/EVT certifications to become Mater ASE/EVT Technicians, as part of our career progression plan. For a Technician to receive an ASE certification,they must not only pass written/computer based testing;given only at ASE authorized test centers, but also have a minimum of two years hands on work experience as well. Every 4 years an ASE/EVT Technician must re-certify in each area of certification to remain current and up to date in the field. Certifications Held: Master Automobile/Light truck: 7 Employees Master Medium/Heavy truck: 6 Employees Master Truck Equipment: 2 Employees Master Transit Bus: 5 Employees L1 or L2 Advanced Level: 2 Employees Master Ambulance Technicians (EVT): 1 Employee Master Fire Truck Technicians (EVT): 1 Employee DIAGNOSTIC CAPABILITIES Our technicians use many platforms of diagnostic and test equipment related to the many different types of equipment and systems used on Fleet maintained vehicles. Here are a few samples of the most commonly used applications. • Ford IDS (OEM Ford software with full module/computer reprogramming). Including full access to the Ford Technical Resource center for full Ford OEM service information. • Cummins Insite(OEM Cummins Diesel Engines)Access to Cummins Quickserve,for OEM Cummins parts and service information. • International Service Maxx(OEM International truck&Engine)Access to OEM International/Navistar OnCommand service Information and parts website. • Allison Automatic Transmission (OEM Diagnostic Med& Heavy Truck Transmissions) • Bendix A-Corn Diagnostics (OEM Bendix Diagnostic Air brake anti-lock systems). • Wabco ToolBox(OEM Wabco Diagnostic Air brake anti-lock systems). • Detroit Diesel Diagnostic Link(OEM Mercedes/Detroit Diesel engines.)With website access to AccessFreightliner.com for service and parts information. • Mitchell PRO-Demand online service information access for all car and Light truck service information. Collier County Friday March 21, 2014 Hertz® Sales servkesEntertalnment En elle Fird nplumm nap Rental 1: , DONLEN A Hertz Company DONLEN Agenda • Recommendations • Supporting Content • DriverPoint Telematics • Aging Fleet Case Study • Agriculture Fleet Maintenance Case Study • Heavy Duty Truck Benchmark Study • Collier County Fleet Analysis Findings and Recommendations DONLEN • Maintenance is currently in control but masking an equipment issue — Average downtime is more than 24 hours indicating large, non-routine PM work • A large number of spare vehicles, including Buses — Required due to significant downtime because of maintenance issues • All assets purchased today, capital is tight — Fleet not able to cycle the vehicles on planned schedules — A modified approach leveraging finance leasing on part or all of the fleet would allow Collier County to maintain established cycling parameters • Telematics is not currently being utilized — Significant opportunity exists to maximize fleet utilization, fuel economy, driver safety, loss and logistics • CNG is on the radar but the infrastructure does not exist today Telematics DONLEN Implement a full behavior change solution that promotes a culture of accountability DRIVER - POINT -Increase fuel economy leading to reduced fuel spend .., -Identify risky behaviors to create a custom and robust safety program -Reduce maintenance costs by eliminating .- inefficient behaviors -Increase driver productivity ,,,,....t...., :;;ooNLEN FleetWeb Integration • Fuel stops matched by location as well as vehicle fuel level to ensure company policy is being followed • Review maintenance transactions and time spent by vendor to complete work • Seamless driver data and account changes • Permissions based on customer, fleet, account level access DRIVER POINT Proven Results DONLEN "This tool will motivate safe • Fuel economy increased 1.1 MPG in the first three driving habits in our months on DriverPoinr organization, reduce accidents, reduce, • Annualized,this improvement in MPG equates to a savings maintenance costs,and of$254 per vehicle identify inefficiencies in our fleet. • Vehicles with DriverPoint1M had a 7.5% lower The best part is that it pays accident rate than vehicles without for itself in quantifiable fuel savings. Everything else falls right to • High-performing vehicles had significantly lower the bottom line." total maintenance, particularly with wear-and-tear expenses Herb Godschalk, Co- President Fisher Auto Parts, Inc 1700 vehicles on DriverPoint DRIVER POINT N Summary DONLEN 0 • OINT V Fuel Maintenance Accidents Increase fuel economy Report vehicle fault codes Decrease accident rate Identify fuel fraud Strategic vendor selection Lower driver risk Determine alt-fuel potential Decrease wear-and-tear Investigate accident claims Enhances the value of all other Donlen programs Aging Fleet Misperceptions DONLEN • Operating a vehicle as long as possible results in lowest TCO - Other components of operating cost begin to creep up • Maintenance & Downtime Increased • Lost resale value Variable Spend • Missed opportunity for fuel reductions • The Vehicles we're running are the best for the job - Is there an opportunity to downsize? - Is there a more cost-effective option? l Missed - Has vehicle technology improved? Opportunity • Assuming that an aged fleet requires less day-to-day admin - Vehicle breakdown/managements of rental - Knowledge of asset location/spend history Unpredictability - Extremely limited forecasting Aging Fleet Case Study DONLEN Lifecycle 4 Years / 120,000 Miles 6 Years / 180,000 Miles CAP Cost Identical between Scenarios (F-150 $29,970) Lease Open-Ended Floating Lease/Lessee Bears Residual Responsibility Fuel Economy Identical Between Scenarios Maintenance Preventive & Non-Preventive Maintenance Expense Estimated Guidebook Averages/ Market Wholesale Averages Resale Cost Per Mile $0.498 $0.515 / l' / Aging Fleet Case Study DONLEN Analysis Time Period: 12 Years Lifecycle Four-Year Six-Year Cycle Savings Cycle Lease $96,991 $66,341 ($30,650) Fuel $80,912 $82,344 $1,432 Maintenance $26,400 $43,700 $17,300 Resale $24,900 $8,800 $16,100 Total Per Unit Savings $4,182 Effective Annual Savings $348 1000 Unit Fleet Annual Savings $348,478 Leasing Comparison DONLEN Implementing a longer lifecycle results in lower total lease payments Lt. Truck Annual Lease Payments 9,000 - _- $3,000 $2.000 - U $1,000 $- -.. 1 2 3 4 5 6 7 8 9 10 11 12 r 48 Month Cycle 72 Month Cycle If 4-Year Cycle is implemented Savings: ($30,650) Fuel Spend Comparison DONLEN A NMz Co,m Implementing a longer lifecycle results in the fleet operating older, less fuel efficient vehicles Lt. Truck Annual Fuel * $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- 1 2 3 4 5 6 7 8 9 10 11 12 •48 Month Cycle 72 Month Cycle * Fuel economy improves from 15 MPG to 17.5 MPG Maintenance Comparison DONLEN Implementing a longer lifecycle results in vehicles accumulating higher mileage and greater repairs Lt. Truck Annual Maintenance $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 s_ MINIM 1 2 3 4 5 6 7 8 9 10 11 12 •48 Month Cycle r 72 Month Cycle Savings: $17,300 Resale Comparison :; DONLEN There is significant value in the trucks sold at the end of 4 years compared to the 6 year lifecycle TRAC Adjustment by Vehicle Cycle 9000 8000 7000 6000 5000 4000 3000 1000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 30 Year 11 Year 12 •48 Month Cycle a 72 Month Cycle If 4-Year Cycle is implemented Savings: $16,100 Conclusions DONLEN Lt. Truck Total Cost of Ownership 517,000 1H $12,000 Jiiiiikla $7,000 $2,000 1 2 3 4 5 6 7 8 9 10 11 12 •48 Month Cycle a 72 Month Cycle Fleet Size Annual 12-Years :, +l , .`2, � 1 Vehicle $ 348 $ 4,182 "r+ r + '.w" °'A `,� ' 50 Vehicles $ 17,424 $ 209,086 Savings: $4,182 100 Vehicles $ 34,848 $ 418,173 500 Vehicles glininni $ 2,090,865 1,000 Vehicles $ 4,181,730 '� For a 1000 vehicle fleet this represents $348.5K in annual savings Agriculture Fleet Maintenance Case Study DONLEN Opportunity: Customer D Industry:Agriculture • An aging fleet resulted in higher variable Fleet Size: 275 costs, including high levels of non- preventive maintenance and downtime, inability to leverage advancements in vehicle technologies, and low levels of driver morale Solution: • Strategic Consulting Services evaluated the advantages to cycling, and identified ideal cycling parameters, and created an implementation plan Results: • Average monthly spend decreased $150 per unit (43%) • PM Compliance increased from 56% to 84% • Over two years, fuel economy increased 11% (14.16 to 15.67) • Increased rental costs were completely offset by fuel and maintenance savings, resulting in lower total costs Agriculture Fleet Maintenance Case Study DONLEN S70,000 $600 $60,000 $500 $50,000 - $400 $40,000 d iink _ ' $300 $30,000 - ' ,_ 4., w � $200 $20,000 _ ,.$10,000 1 - ` $100 I I Ili $0 $ N N N N N N N N N N N N M M c+) .6 m c Q m c a c w a n 1 LT 3 $ c - (n 0 Z 0 A LL c 3 2, - . n( 0 Z O 2, ii M INIM Non-Preventive Spend Preventive Spend —Per Unit Cost —Linear(Per Unit Cost) Heavy Duty* Truck Benchmark CPM DONLEN Younger vehicles and high preventive maintenance compliance reduce overall cost per mile Heavy Duty Truck Benchmark Comparison $0.70 - $0.63 $0.60 ---_ _ $0.50 $0.50 — -- $0.40 $0.30 _ $0.20 $0.10 — — $0.00 r— Benchmark 1-Older Vehicles,High PM Benchmark 2-Younger Vehicles,High Benchmark 3-Older Vehicles,Low PM Compliance PM Compliance Compliance * Heavy Duty defined as Class 7 and Class 8 vehicles DONLEN Maintenance Overview Collier County Fleet Mamt. FLEET WORK ORDER ACTIVITY PAGE:373 3307.rpt 10/01/2012 TO 09/30/2013 DATE: 1/14/2014 13:43 The date range for the report Is based on the transaction posting date. the dollies reflect actual fleet costs.No markup Is calculated. REPORT TOTALS: TOTAL PIECES OF EQUIPMENT WITH WORK ORDERS:1,683 TOTAL WORK ORDERS:7,256 -- 2,442 I Repaired From PN 5eryfoe 4,229 2 General Repair 2 3 Vendor Repair 7 5 Operator Responsible 7 6 Vandaavn 573 8 Road CM! 5 9Add On 126 A Accident 8 0 Body Repel, 158 C Capitalization Repair 4 G TANKER TRUCK FUELING 2 N NON STOCK PART(S)FOR EQUIPMENT 2,769 P PM Service 4 R Vendor Warranty 3 5 Factory Warranty 2 T Strop Warranty 1 V Valvoline 509 W Car Wash 25 5 AVIS 74 Z Non USE ReP/M Indicates large non-PM type repairs •• 0 T 24 HOURS: 2,011 .• . 25 TO 48 HOURS: 701 49 TO 72 HOURS: 456 OVER 96 HOURS: 3,664 Administrative Services Division Cp CY C.oitnty Interoffice Memorandum Date: May 6, 2014 To: Leo Ochs,Jr., County Manager From: Len Golden Price,Administrative Services Administrator Subject: Donlen (A Hertz Company) Report dated March 21,2014(Updated) Staff met with representatives of Donlen and provided them with a tour of our facilities and performance metrics. The visit was very productive and I believe they were impressed with what they saw. I reviewed with staff the presentation Donlen prepared for your consideration. While it was based upon data we provided,some clarification is necessary. What follows is a point-by-point discussion. Findings and Recommendations Maintenance is currently in control but masking an equipment issue Donlen accurately calculated that the average work order was open for over 24 hours, however, this information is not a good indicator of actual repair time. Work orders are often opened as soon as a vehicle is received and not closed until invoices for parts are received. There are a number of factors that impact the time a work order is open including availability of a technician, parts,or cost information. A much better indicator is actual downtime. For this same period studied,October 2012 through September 2013, downtime averaged less than 5 percent for the entire fleet. A breakdown of the most prominent vehicle classes (does not include off-road and large equipment)follows: Average Down Time #Vehicles Hrs Sedans 55 82 3.4% Light/Med Trucks/Vans 504 73 3.0% Small/Med Buses 25 280 5.6% Passenger Buses 27 260 5.2% Ambulances* 41 549 6.7% *Note:7 of the 41 ambulances were retired during the year While we have seen a slight increase in the number of major repairs on our light to medium duty vehicles due to an aging fleet and vehicles coming out from warranty,the amount has not yet become significant. Our buses and ambulances, as expected due to the high usage,see a slightly lower availability rate resulting in the overall average of approximately 95%availability across the fleet. "Serving Those Who Serve" A large number of spare vehicles, including buses, are required due to significant downtime because of maintenance issues We respectfully disagree with Donlen's assessment regarding spares. USDOT grant guidelines say this in regard to spares, "The number of spare buses in the active fleet for grantees operating 50 or more revenue vehicles should not exceed 20 percent of the number of vehicles operated in maximum service." We currently have 24 fixed route buses in service with 3 spares, a spare ratio of 13 percent. Our ambulance ratio is higher(34 units, 9 of which are not assigned to stations), however, not all vehicles not assigned to stations are spare units. Three are used for special units and not available for spares. At the height of our busiest season we put up to three seasonal units in service, which leaves 3 true spare vehicles. Additionally, if Medflight is down we often put an additional unit in service. Our spares inventory is based on operational issues that are not related to the age of our fleet and we would not recommend reducing it under any circumstances. All assets are purchased today. Fleet is not able to cycle vehicles on planned schedules. A modified approach leveraging finance leasing on part or all of the fleet would allow Collier County to maintain established cycling parameters. Fleet concurs with the conclusions regarding current procurement and replacement strategies. This comes down to a policy and strategy decision about how best to leverage resources and prioritize needs. On an annual basis Fleet provides departments with a list of vehicles recommended for replacement. Mileage and/or usage, age, repair costs and cost of operation are all considered in preparing this list. Due to budgetary constraints many departments have deferred replacing vehicles and have authorized repairs not otherwise considered cost effective because of funding. Fleet will support management's decisions regarding how best to address this situation. Telematics is not currently being utilized Fleet Management agrees that the use of telemetrics may offer opportunities to encourage good behaviors that could lead to increased safety and reduced cost. While Collier's fuel system tracks vehicle mileage, the information is subject to the accuracy of the user when keying it in at the pump and may be skewed when fueling offsite at non-county facilities. Telematics could help our agency collect more accurate data. CNG is on the radar but infrastructure does not exist today Fleet is monitoring the industry in this regard and believes that at some point CNG will provide the County with a viable option. At present there are no fueling stations readily available, however,we continue to monitor the situation as Waste Management, Inc.,the County's provider for residential garbage and recycling collection, is in the process of planning to convert its fleet. This may present some opportunities for partnership to be explored in the future. "Serving Those Who Serve" Telematics If a telematics system is implemented, Fleet recommends a passive system that downloads data using hot spots (perhaps at County fueling stations) rather than real-time streamed data. The use of telematics will only provide value if the data is analyzed and routed to appropriate authorities and if there is an associated program to include established standards, operating policies,and an enforcement arm. While real-time streamed data could produce alerts when vehicles exceed threshold settings,such as speed, acceleration, or idle time, unless there is someone monitoring those alerts and taking appropriate actions,there is no value in the cost of a live system. Like any automated system, a vehicle telemetric system will require hardware and software that needs to be maintained, updated, and administered. Reports will have to be created, distributed and result in appropriate actions in order to create a positive cost to benefit ratio. The report compiled by Donlen estimates an annual savings in fuel of approximately$250 per vehicle, based on 1.1 MPG improvement. Based on Collier County's reported usage for gasoline operated vehicles, a reduction of 1.1 MPG (an 8% reduction)would result in approximately $100,000 annual savings. Due to the varied usage of different types of vehicles, it is hard to determine the extent of savings we might actually see without further analysis. Aging Fleet There is no denying that an older fleet becomes more expensive to maintain and that our current fleet has aged beyond our recommended standards. That being said,the calculations and studies presented by Donlen differ significantly from our actual experience. The Fleet Case Study they presented,which was not based on our data, studied the life cycle of F-150 pickup trucks with the assumption of 30,000 miles per year and a purchase price of approximately $30,000. This year's base price for the F-150 is $22,000 using the Tamiami Ford bid. Our actual annual usage of this class vehicle is under 12,000 miles per year. Our maintenance cost for these vehicles has also been less than the study case, likely due to the difference in usage. Applying our fuel and maintenance data to the same 12-year analysis, yields the following: Four-Year Six-Year Lifecycle Cycle Cycle Difference Lease 96,991.00 66,341.00 (30,650.00) Fuel 28,800.00 33,600.00 4,800.00 Maintenance 12,000.00 18,000.00 6,000.00 Resale 24,900.00 8,800.00 16,100.00 Total per unit (3,750.00) Effective annual difference (312.50) 1000 unit fleet (312,500.00) "Serving Those Who Serve" If we apply our experience with reselling vehicles at auction (at our recent March 2014 auction, six 7-year old light trucks sold for an average of$6350), the effective annual difference per vehicle is ($490.00). The lease price has to come down to less than $27,000 to break even using the County's experience. Conclusions Based on the county's vehicle usage and experience,the County's recommended cycle time has been and remains between five and seven years. The recent economic downturn has been more detrimental to the very heavy fleet items which are costly to repair as well as to replace. While cycle times have increased for the light fleet (sedans and light trucks,vans and SUVs), downtime and high cost repairs have not been significant as of yet. As this portion of our fleet approaches averages of eight to ten years,this pattern cannot continue and the County will see reduced availability and higher cost. The manner in which we approach correcting this trend, whether to purchase outright or lease/purchase vehicles, is a decision that should be made at the agency or department level. Fleet Maintenance can support either method. "Serving Those Who Serve"