HomeMy WebLinkAboutFleet Replacement Policy
Augusta Richmond GA
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APPROVED
ApR 2 0 2004
AUGUSTA, GEORGIA
FINANCE DEPARTMENT-FLEET MANAGEMENT DIVSION
FLEET REPLACEMENT POLICY
(AUGUSTA.RICHMOND COUNTY COMMISS10N)
1. POLICY: Timely and appropriate acquisition and maintenance of fleet resources is essential
in this Governments mission to provide services to the Citizens of Augusta. This Governments
fleet is nothing more than a tool for the provision of services to the general public by government
employees. To facilitate budgeting and planning of resources this regulation establishes "Life
Expectancies" for fleet equipment. The Life Expectancies are used as planning parameters and
identify potential candidates for replacement. Actual replacement criteria is established using a
point system which considers; age, mileslhours, reliability, maintenance and repair costs and
overall condition. The criteria will identify specific units requiring replacement. Vehicles and
equipment purchased with government funds represent a valuable resource and as such will be
preserved and maintained to legal and established standards published in this policy. The
replacement criteria published in this regulation are not absolute and are contingent on available
funds and overall condition of equipment within the "window" of replacement.
2. PURPOSE: The timely replacement of fleet vehicles and equipment is necessary to encourage
and maintain a safe, efficient, reliable and cost effective fleet. This policy establishes acceptable
replacement criteria for replacement consideration of existing fleet assets. In addition, it
establishes minimum safety and mechanical standards of equipment that are not replaced due to
budgetary constraints. The overall goal of this policy is to reduce overall equipment life cycle
costs (procurement, maintenance, and disposal). It is the intent of this policy to replace vehicles
and equipment when owning and operating them cost more than owning and operating their
replacements.
3. ECONOMIC CONCEPT: All vehicles and equipment within the fleet will eventually wear
out. As they age they become increasingly more expensive to operate and maintain and less
reliable and safe to use. In order to minimize total vehicle or equipment cost, replacement
should be made when the operating cost (maintenance, repair and fuel) exceeds the value of the
vehicle over time.
4. REFERENCES:
4.1 Managing Public Equipment (Second Edition), American Public Works Association,
August 2000.
4.2 Fleet Maintenance Staffing Guide, National Association of Fleet Administrators, 2002.
4.3 Fleet Management; IQ Report (Fleet Management) - Volume 34INumber 7, International
City/County Management Association, July 2002.
4.4 Official Code of Georgia, Chapter 8, Equipment and Inspection of Motor Vehicles.
5. DEFINITIONS:
5.1 Life Cycle Cost- those costs associated with ownership, operating expenses throughout
the working life of equipment.
5.2 Life Expectancy: The expected number of years a vehicle or piece of equipment is
expected to provide economical, cost effective service in the performance of its primary intended
use.
6. GENERAL:
6.1 In establishing the Fleet Replacement Policy, tbe Augusta Commission will establish a life
expectancy for each vehicle and piece of fleet equipment, (Appendix I). The life expectancy
will be expressed in age, miles, or hours of operation.
6.2 The life expectancy of any new type equipment or vehicle, not currently in the inventory,
will be established and presented as part of the agenda item presented to the Commission for
the approval to purchase the item.
6.3 The life expectancy allows for the timely planning of replacements of fleet assets for the
purpose of annual budget submission. It has a direct affect on the annual Capital Outlay
program as well as the "Non-Contract" maintenance budget.
6.4 The life expectancy is a primary factor, but not sole factor, in consideration of potential
replacements and is used for budget planning.
6.5 Replacement criteria is an evaluative process whereby potential replacements, identified
from the Life Expectancy evaluation, are graded individually to determine the necessity of
replacement and assist in prioritizing replacements. Each vehicle will be evaluated according
to the matrix at Appendix II.
6.6 Vehicle replacement is contingent on available funding.
7. PROCESS of REPLACEMENT:
7.1 Fleet Management will maintain an inventory of all fleet assets, the department/division
assigned to, the date acquired and the replacement date. This infomlation will be provided to
each department at the beginning of each annual budget process.
7.2 Department Heads will review their inventories to detelmine those items that require
replacement and establish a priority of need for their depmiment. The information will be
displayed on the Budget Form C, Capital Equipment/Budget Request (Appendix IV).
7.3 A copy of this form will be forwarded to the Fleet Manager with the original being
submitted with the requested budget to Finance.
7.4 Fleet Management will consolidate all capital outlay requests, by major fund, and
formulate a recommendation of replacement, through the Finance Director to the
Administrator.
8. Replacement Criteria: (See Appendix II)
8.1 Consideration for replacement will be based on several factors: life expectancy, actual
age, operating cost (maintenance and fue!), annual mileage/utilization, reliability, and resale
value. Each vehicle or piece of equipment (capital expenditure) will be evaluated by Fleet
Management using the form at Appendix II to determine if replacement is required.
8.2 Should the vehicle meet the replacement requirements and funding is available, the
information will from the evaluation will be transposed to the Replacement Criteria Foml,
(Appendix IV) and submitted with the Agenda for purchase approval.
8.2 Vehicles which have been classified as totaled will have priority in the replacement
process in the next fiscal year.
9. Vehicles Retained Beyond Life Expectancy.
9.1 A number of Public Safety, pursuit vehicles are replaced in order to ensure reliability.
9.2 Public Safety vehicles taken out of public safety service will be assessed by Fleet
Management to determine the possibility of continued use in an administrative capacity.
9.3 Vehicles retained beyond their life expectancy will be maintained to a level which meets
the legal requirements of safety established by Georgia Law (O.c.G.A. Chapter 8, Section 40)
Appendix V.
10. ANNUAL FLEET REVIEW: At the end of each calendar year, Fleet Management will
calculate the annual mileage for each vehicle within the fleet. Vehicles which have been driven
5,000 miles or less in the year will be identified and a list published to the Finance Director and
Administrator. Each Department Director will be provided a list of vehicles within their
department with 5,000 miles or less (miles driven in a year). Directors must justify the retention
of these vehicles in their active fleet. Fleet Management will consolidate the individual
justifications and provide a recommendation through the Director of Finance to the
Administrator for approval to retain or recommendation to turn the vehicle in.
11. FUNDING:
11.1 General Fund: Departments funded by the General Fund will submit capital asset
requirements each year as part of the budget process. Fleet Management will consolidate all
capital outlay requests and provide a General Fund Capital Outlay replacement plan for that
calendar year. The recommendation will be forwarded through the Director of Finance to the
Administrator.
11.2 Enterprise Funds - Each Department funded as an Enterprise Fund will submit capital
asset requirements as part of the budget process. Fleet Management will review all
requirements to ensure they are consistent with this policy.
11.3 Grant Funds - Departments which have access to grants are responsible for the
application and administration required to obtain the grant. Fleet Management will provide
any necessary vehicle/equipment specifications and appropriate purchasing processing
(including proposals in accordance with purchasing requirements).
11.4 Seizure Funds - (applicable to Sheriff and District Attorney) - These funds are awarded
based on a court order and are under the control of the respective elected official. They may
be used by the receiving agency, have no affect on the General Fund and may be used for
vehicle and/or equipment purchases and/or used in compliance with the Court Order. Fleet
Management will assist with the processing of necessary administration associated with the
purchase of vehicles or equipment.
11.5 Special One Cent Sales Tax (SPLOST) - The purchase of vehicles or equipment using
SPLOST funds will be closely monitored to ensure that any expenditures are consistent with
the approved referendum.
12. PROPONENT: The proponent agency for this policy is: Finance Department, Attention:
Fleet Management Division. Any suggestions for improvement or comments should be
addressed to Finance Department, Attention: Fleet Management Division.
13. This policy supercedes the Augusta-Richmond County Vehicle and Equipment
Replacement Criteria, dated 1 September 1998.
APPENDIX I
LIFE EXPECTANCY
EQUIPMENT TYPE
Air Tools (construction)
Asphalter
ATV
Auger, Portable
Automobile, Administrative
Automobile, Pursuit
Blower, Leaf
Boat
Boring Machine
Bus, Small
Cart, Utility
Chipper, Wood
Compactor, Landfill
Compressor, Air
Dozer, Tracked
Dozer, Tracked - Landfill
Edger, Lawn
Engine, Outborad
Excavator, Tracked
Excavator, Wheeled
Finisher, Concrete
Flusher, Sewer (trailer mtd)
Forklift
Generator, Portable
Grader, Road
Grinder, Stump
Lawn Equipment - small
Loader, Front End
Machine, Smoke
Mixer, Cement (towed)
Motorcycle
Mower, Self Propelled W/B
Mower, Sidearm
Mower, Small Riding
Mower, Towed -all types
Paint Machine, Line Traffic
Prunner
Pulverizer
Pump - all types
Rodder, Sewer (towed)
AGE
5
10
8
6
8
4
4
12
10
10
7
8
6
6
7
6
2
10
8
8
5
8
12
8
10
8
2
10
5
6
6
3
8
4
8
6
2
4
7
8
MILES/
HOURS
N/A
N/A
N/A
N/A
125,000
90,000
N/A
N/A
8,000 hr
1,250,000
N/A
5,000 hr
10,000 hr
5,000 hr
8,500 hr
8,500 hr
N/A
N/A
8,000 hr
9,000 hr
N/A
N/A
N/A
N/A
9,000 hr
5,000 hr
N/A
9,000 hr
N/A
N/A
75,000
N/A
7,000 hr
2,500 hr
N/A
N/A
N/A
N/A
3,000 hr
N/A
EQUIPMENT TYPE
Roller, Asphalt
Sandblaster
Saw, Chain
Saw, Concrete
Saws, Other
Scraper/Motor grader
Snow Plow
Sprayer, trailer mtd
Steam Cleaner (diesel)
Steam Cleaner (gas)
Sweeper (floor/street)
Tractor, AG
Trailer, Cargo (small)
Trailer, Equipment
Trailer, Tanker
Trailer, Trash Haul 12 Ton
Trailer, Trash Haul 24 Ton
Trencher
Truck, Animal Contain
Truck, Bucket (over 45 ft)
Truck, Bucket (under 45 ft)
Truck, Crane
Truck, Dump-Single Axle
Truck, Dump-Tandem
Truck, Fire Ladder
Truck, Fire Pumper
Truck, Flatbed/Stakebody
Truck, Fuel/Lube
Truck, Grapple
Truck, Landscape
Truck, Leaf Vac
Truck, Pickup - below 1 Ton
Truck, Pickup- 1 Ton & over
Truck, Pole Digger
Truck, SUV
Vacuum, Lawn
Van, Cargo & Passenger
Van, Prisoner/work Detail
Washer, Pressure
Welder
AGE
8
7
2
4
4
12
15
6
8
6
8
10
12
15
10
10
10
8
6
10
8
12
10
12
15
15
10
10
10
10
8
8
9
12
8
5
8
8
5
7
MILES/
HOURS
9,500 hr
N/A
N/A
N/A
N/A
9,500 hr
N/A
5,000 hr
N/A
N/A
9,500 hr
9,500 hr
N/A
N/A
N/A
N/A
N/A
7,500 hr
125,000
125,000
125,000
125,000
150,000
150,000
N/A
N/A
125,000
150,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
N/A
125,000
125,000
N/A
N/A
FINANCIAL IMPACT: Deferring or not replacing vehicles and equipment beyond their life
expectancy impacts on the operating budget, directly affecting vehicle cost allocation
(maintenance budget). As vehicle move beyond the life expectancy, maintenance costs
move from contract repairs to non-contract repairs, directly affecting their operating budget.
APPENDIX II
REPLACEMENT EVALUATION MATRIX
FLEET REPLACEMENT POLICY
I FACTOR I POINT DESCRIPTION I POINTS I
Age One point for each year of chronological age. For Pursuit vehicles
(road patrol and traffic cars) use 1.5 points for each year. Use .5 for
each year for equipment with life expectancy of 10 years or more.
Miles/Hours One point for each 10,000 miles of use or 1,000 hours (500 hrs
small equipment)
Type of 5 points for vehicles/equipment for severe duty service
Service 3 points for public service work type vehicles.
1 point administrative or passenger transport type vehicles.
Reliability Points are assigned based on the average number of times an item is
in the shop over the past year. The repair is not a "quick fix" repair,
"come-back" or PM service.
5 points = average of 2 times each month or a total of 15 times
within 12 months (add one point for road patrol/traffic car,
and one for fire machine).
3 points = average of one time each month or up to 10 times
within a 12 month period.
1 point = average of one time every 3 months.
Maintenance Considers total repair costs against the purchase price of the
And Repair equipment.
Costs 5= maintenance and repair costs equal to or greater than the
purchase price of the equipment.
1 = maintenance and repair costs 20% or less than the purchase
price of the vehicle
Condition Considers overall body condition, interior and exterior; accident
history future repair estimates. Scale of 1 to 5 with 5 being a vehicle
that is in poor condition.
TOT AL POINTS
RANGES:
Under 18 points Excellent
18 to 22 points Good
23 to 27 points Qualifies for Replacement
28 points or more Needs immediate consideration for replacement
APPENDIX In
AUGUSTA, GEORGIA
FINANCE DEPARTMENT-FLEET MANAGEMENT DIVISION
REPLACEMENT CRITERIA FORM
Department Name: Department Number: Date:
Vehicle Description:
Assigned Use:
I Signature of Director/Elected Official
Actual Age: Current miles/hours: Purchase Price:
Life Expectancy Criteria Requirements- (Policy Evaluation)
Age Mi/Hr: Type of Reliability: Maint/Repair: Condition:
Service:
Evaluation Points: I Policy Evaluation Results:
Fleet Manager Recommendation
Finance Director Approval:
Replacement Date: Fiscal Year Replacement:
Estimated Replacement Cost: Funding Source:
APPENDIX IV
Budget Worksheet
FLEET REPLACEMENT POLICY
Augusta, Georgia
Capital Equipment/Budget Request
2005 Budget Worksheet
FUND NO:
DEPARTMENT No. & NAME:
ACCOUNT No.:
Item/Project Description
Replace Asset No.
Replace Asset No.
Replace Asset No.
Replace Asset No.
Replace Asset No.
Total
Form C
Page:
Appendix V
Mechanical Standards
FLEET REPLACEMENT POLICY
The following represents the standards of equipment for vehicles from the Georgia Code. Augusta
government vehicles will comply with the mechanical standards established by law. Any item not in
compliance with Georgia law will render the vehicle "out of service" or not operational on the public
highway until the short-coming is corrected. No employee, supervisor or manager has the authority to
"over-ride" these provisions. Policy dictates that employees of Augusta will operate their vehicles in a
"safe, legal and prudent manner consistent with all Federal, State, and local laws and ordinances".
Chapter Sec Para Sub-Para SUBJECT DESCRIPTION
40 8 22 (d) Head lights Headlights shall be maintained in
proper working condition
40 8 23 (b) Taillights Taillights shall be maintained in
proper working condition
40 8 23 (b) Trailer Tail Lights Every motor vehicle, trailer, semi-
trailer, and pole trailer shall be
equipped with 2 taillights
40 8 25 (b) Brake lights If a motor vehicle is manufactured
with 2 brake lights, both must be
operational.
40 8 26 (d) Rear lights-general All lenses on brake lights and signal
devices shall be maintained in good
repair and shall meet manufactures'
specs
40 8 27 (a) Flag on Projected Load A 12 inch by 12 inch (orange/red)
flag for any projection beyond 4
feet from the rear of the vehicle
40 8 50 (a) Brakes Every vehicle to have two separate
means of applying the brakes. (ref:
park brake)
40 8 50 (c) Trailer brakes Every trailer of 2,500 pounds gross
weight or more shall be equipped
with brakes on all wheels.
40 8 53 Brake Performance @ 20 mph stop in 30 feet
40 8 54 Maintenance of Brakes All brakes shall be maintained in
good working order and shall be so
adjusted as to operate as equally as
practicable with respect to the
wheels on opposite sides of the
vehicle.
40 8 70 (a) Horns Every motor vehicle when operated
upon a highway shall be equipped
with a horn in good working order
(200 feet)
40 8 71 (a) Exhaust System Must be in good working order
40 8 72 Mirrors Must be equipped to reflect to the
driver, 200 feet to the rear of the
vehicle
40 8 73 (c) Windshield & Wipers Wipers to be maintained in good
working order
40 8 73 (d) Windshield & Wipers No motor vehicle shall be operated
with a windshield or rear window
having a starburst or spider
webbing effect greater than three
inches by three inches.
40 8 74 (a) Tires (non-CDL) (l )Shall have not less than 2/32
inch tread measurable in all major
grooves.
(2)Shall be free from cuts, breaks or
snags deep enough to expose body
cord.
(3)Shall be free from bumps, bulges
or separations
40 Tires (CDL)/Buses (1) Front tires 4/32, shall be of the
same tread and not recapped.
(2) All other tires, 2/32
(3) Same as (2) & (3) (non-CDL)
40 8 75 Mud Flaps (1) Mounted on the rear most
wheels
(2) Shall have a ground clearance
of not more than one-half the
distance from the center of the
reamlost axle to the center of
the tires they are covering
unless equipped with fenders
that accomplish the same
purpose.
40 8 76.1 All Safety belts
40 6 254 All Placing load on or in No person shall operate any motor
vehicle vehicle with a load on or in such
vehicle unless the load on or in such
vehicle is adequately secured to
prevent dropping or shifting or such
load onto the roadway.
40 8 4 All Slow moving Vehicles Vehicles/equipment generally
operated at speeds less than 25
miles an hour, including all road
construction or maintenance
equipment shall have the proper
emblem (ASAE S276.1)
Appendix n
Page 2
OFFICE OF THE AOMIN.ISTRATOR
CHARLES R. OLIVER, PE CPA
ADMINISTRATOR
WALTER S. HORNSBY, III
ASST. ADMINISTRATOR
ROOM 801 - MUNICIPAL BUILDING
53D GREENE STREET - AUGUSTA, GA 3091 1
(706) 821-2400 - FAX (706) 821-2819
September 2, 1998
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Mr. Harry L. Siddall
Fleet Manager
Room 901, Municipal Building
530 Greene Street
Augusta, Georgia 30911
Dear Harry,
The Augusta Commission, at its Regular Meeting held Tuesday, September 1,
1998, aproved the Augusta-Richmond County vehicle and equipment replacement
criteria. (Funded by Account #21-4511-00-0449.)
Should you have any questions in this regard, please do not hesitate to call.
Sincerely,
--r- - ~
Charles R. Oliver
Administrator
CRO/shw
cc: Mr. David Collins
Mrs. Donna Williams
Mrs. Geri Sams
9-1-98-#4
AGENDA ITEM
(To be completed by Clerk of Commiss1on)
TO:
Finance Committee/Commissioners
Charles "Randy" Oliver, County Administrator
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199
FROM:
Harry L. Siddall, Fleet Manager
DATE:
August 17,1998
SUBJECT:
criteria.
Motion to approve the Augusta-Richmond County vehicle and equipment replacement
CAPTION:
criteria.
Motion to approve the Augusta-Richmond County vehicle and equipment replacement
BACKGROUND: In performance of the duties of the Fleet Management Department, the section requires
the need to determine when equipment should be replaced. To effectively determine this, a replacement
limitation criteria has to be established as a point of reference for the determination. The current Fleet
Maintenance Contract, Section 5.2 - Limitations, contains language stipulating that the replacement
guidelines will be established and that all repair cost for equipment that has exceeded it's life will be
charged non-contract cost.
ANALYSIS: Common fleet practices require a vehicle replacement criteria be established, in order to
determine if maintenance funds should be spent to repair a unit, or if the unit should be salvaged.
FINANCIAL IMP ACT: Funding currently established for contracted services would be reduced as
equipment becomes overage p.nd the funds would then be transferred to non-contract funds. Approved
repairs, as authorized by the Fleet Manager, would be funded with the non-contract revenues.
ALTERNATIVES:
I. Approve the replacement criteria for Augusta-Richmond.
2. Do not approve the request and hamper the effectiveness of all of the City/County Departments.
RECOMMENDATION: Approve the replacement criteria.
DEPARTMENT
DIRECTOR:
FUNDS ARE AVAILABLE IN THE
FOLLOWING ACCOUNTS:
21-4511-00-0449
COUNTY
ADMINISTRATOR:
FINANCE:
COMMITTEE ACTION:
AUGUSTA-RICHMOND COUNTY EQUIPMENT REPLACEMENT CRITERIA
The following is the Replacement Criteria's for Augusta-RichmoncJ> County vehicles and
equipment:
EQUIPMENT TYPE YEARS OR MILEAGE fO\iCi
Automobiles, Administrative 5 125,000 et\t
Automobiles, Emergency (Fire/CID) 4 125,000 ~(1Ce~
Automobiles, Pursuit 4 110,000 \\ \te~
Buses 15 n/a lqq
Motorcycles 5 50,000
Trailers, Cargo 10 n/a
Trailers, Equipment Hauler 15 n/a
Trailers, Tanker 8 n/a
Trucks, Animal Control 7 150,000
Trucks, Bucket, under 45 foot 7 110,000
Trucks, Bucket, over 45 foot 10 110,000
Trucks, Crane 10 175,000
Trucks, Dump, under 15 ton 8 175,000
Trucks, Dump, over 15 ton 10 175,000
Trucks, Fire, Pumper 15 n/a
Trucks, Fire, Ladder 15 n/a
Trucks, Flatbed/Stakebody 8 150,000
Trucks, Pole Digger 12 150,000
Trucks, Pickup, below 1 ton 6 150,000
Trucks, Pickup, 1 ton and above 7 150,000
Trucks, Tractor, 5th wheel 10 250,000
Trucks, Sewer Cleaner 7 150,000
Trucks, Sewer Rodder 7 150,000
Trucks, Utility Body 7 150,000
Vans, Cargo and Passenger 6 150,000
Vans, Law Enforcement 5 125,000
Compressor, Air 8 n/a
Boat 10 n/a
Boat Motor 7 n/a
Bulldozer 12 n/a
Chipper 7 n/a
Excavator 12 n/a
, Forklift 12 n/a
Generator 10 n/a
EQUIPMENT TYPE YEARS OR MILEAGE
Grader, Road 12 n/a
Landfill Bulldozer 3 n/a
Landfill Compactor 3 n/a
Landfill Excavator 4 n/a Xci
Landfill Loader 4 n/a )10\
Landfill Scraper 3 n/a e,)\\
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Loader, Backhoe 10 n/a ~l\Ce,
Loader, Front End 10 n/a 'b \te,~
Mower, Riding 7 n/a iqq
Mower, Self-Propelled, Commercial 4 n/a
Mower, Towed, Rotary 7 n/a
Mower, Towed, Flail 7 n/a
Pumps 5 n/a
Roller, below 8 ton 6 n/a
Roller, above 8 ton 8 n/a
Roller, Sheepfoot 10 n/a
Saw, Rescue 4 n/a
Scraper 12 n/a
Sweeper, Floor 6 n/a
Sweeper, Street 7 n/a
Tractor, Agricultural 10 n/a
Tractor, Side Arm Mower 10 n/a
Tractor, Flail Mower 10 n/a
Trencher 7 n/a
Utility Cart 6 n/a
The Fleet Maintenance Contractor will make replace versus repair recommendations when
equipment requires repairs estimated to exceed established repair limits or when the Contractor
believes the equipment is uneconomical to repair.
Replace versus repair analysis should include, but not limited to:
Equipment repair estimates
Equipment replacement cycles
Equipment condition
Equipment life cycle cost
The Fleet Manager will determine, based on the analysis, if the equipment should be removed the
fleet.
Fleet Management will prepare the appropriate documentation to request approval from the
Augusta-Richmond City/County Commission to excess the equipment and prepare for auction.