Operational Policy. Policy Title: Applies to: Reference # Approved by: Dates: Total # of Pages Effective: November 6, 2013 Fleet Governance Committee
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1 Operational Policy Policy Title: Applies to: Reference # Fleet Asset Management All City Vehicles 405-FLT-13 Approved by: Dates: Total # of Pages Effective: November 6, 2013 Fleet Governance Committee Last Review: 10 Next Review: November 2015 Authority: Policy 001-GEN-10: Corporate Operational Policy and Guideline Management Fleet Governance Framework 1.0 Purpose The City of Regina utilizes a wide range of fleet vehicles and equipment in carrying out municipal operations. Fleet management is very wide in scope and includes the full circle of justification, specification, acquisition, assignment, utilization and disposal. The primary purpose of this policy is to ensure that the City s vehicle and equipment fleets adequately support the City s service delivery requirements and also delivers effective outcomes in vehicle efficiency, safety, environmental performance and costs. This Operational Policy establishes the tenets of a City of Regina Fleet Asset Management Program necessary to achieve the overall Policy purpose noted above. It also provides the authority for the establishment of guidelines and procedures that will describe administrative procedures, technical information, and standards for administering the Program. 2.0 Scope This Policy shall apply to all City vehicles except for Regina Police Service vehicles. This Policy deals with the management of fleet assets; fleet maintenance, fleet utilization standards, fuel management, vehicle operations, and fleet safety are covered by separate policies. 3.0 Definitions 3.1 Allied equipment equipment that is permanently installed on the main unit chassis. Examples of allied equipment are garbage packers, sewer jets, port-apatchers, service bodies, dump boxes and aerial lifts. 3.2 Automobile all vehicles such as compact, mid-size and full sized sedans and station wagons. 3.3 Civic Fleet all vehicles and equipment not assigned to the Transit or Fire & Protective Services departments.
2 405-FLT-13: Fleet Asset Management Policy Page 2 of Enhanced replacement the upgrading of an existing fleet unit with a replacement unit of significantly increased capacity or added functionality. 3.5 Fire apparatus all front line fire fighting vehicles such as pumpers, quints, aerial platform & ladder trucks, etc. 3.6 Fire Fleet - all vehicles and equipment assigned to the Fire & Protective Services department. 3.7 Fire rescue/emergency response all vehicles such as hazmat response vehicles, water rescue equipment, mobile command centre, etc. 3.8 Heavy equipment all equipment used to construct and maintain the infrastructure of the corporation such as roadways and utilities. This includes equipment such as graders, dozers, packers, pavers, sweepers, loaders, rollers and loader-backhoes. 3.9 Heavy truck all trucks greater in size than a one-ton truck. These will include three-ton, five-ton, seven-ton and semi-tractor-trailer combinations, as well as any allied equipment mounted to the chassis High visibility marking reflective striping materials used for fleet identification and safety considerations 3.11 Light truck all trucks up to and including one-ton rating. Included are full size pickups and vans, downsize pickups and vans, crewcab pickups, and allied equipment such as aerial lifts and service bodies Optimum replacement cycle the optimum replacement cycle for each fleet class will be at the point where the total average annual life cost is at its lowest. A fleet unit shall be considered to have met its economic replacement point when it has reached the optimum replacement criteria within the Replacement Zone Replacement Criteria the criteria to be evaluated to determine replacement priority are based on age, utilization, maintenance cost, downtime, physical condition and obsolescence Replacement Zone the specific length of time or usage during which a unit shall be evaluated for replacement Safety lighting system a light system designed to provide forewarning of potential hazards to the motoring public. May include components such as rotating lights, strobes, light bars, flashing lights, or arrowboards, and may be used individually or in various combinations Trailers all any non-motorized van or wagon towed by a car, truck or tractor and is used to haul materials and goods or act as temporary shelter for work crews Transit buses all conventional transit and paratransit buses 3.18 Transit Fleet - all vehicles and equipment assigned to the Transit department Turf and light industrial equipment all landscape and golf course maintenance equipment such as mowers, turf trucks, and tractors 3.20 Vehicle includes all licensed and unlicensed vehicles, powered mobile equipment, and trailers that are owned or leased by the City of Regina.
3 405-FLT-13: Fleet Asset Management Policy Page 3 of Guiding Principles The Policy ensures that staff follows a standard approach to managing Fleet assets in line with the following principles: Regulatory Compliant The City s first obligation is to comply with all relevant legislation, regulatory and statutory requirements. Customer-Focused Policy and decision makers are aware of the requirement to establish agreed Levels of Service, and apply these Levels of Service in shaping and delivering fleet management activities; and Stakeholders are aware of the cost of managing fleet assets and maintaining agreed Levels of Service, along with the costs associated with potential changes to the Levels of Service; Whole Life Perspective Staff take a comprehensive approach to fleet management that considers both the big picture and the combined impact of managing all aspects of the asset life cycle including the full costs of acquiring, operating, maintaining, and retiring fleet assets; Staff take a total lifecycle cost approach when acquiring the fleet assets, where all associated costs are taken into consideration and not just the initial capital cost; and Staff ensure that fleet management efforts are aligned with this Policy as well as guidelines and procedures developed and implemented to support this Policy. Robust, Repeatable & Defensible Decision Making Staff adopt a formal, consistent repeatable approach to the management of fleet assets, incorporating a methodical approach and providing a clear a justifiable audit trail for decisions and actions; Risk-Based Staff manage asset risks associated with attaining the agreed Levels of Service by focusing resources, expenditures and priorities based upon risk and the corresponding cost/benefit; Staff maintain fleet assets proactively to maintain acceptable fleet availability. Forward Looking & Sustainable the City acquires new fleet assets with due regard to their future operating costs; the City considers environmental impact when acquiring fleet assets the City develops the capability of staff through business involvement, training and effective communication in a way that ensures they always have the necessary skills to manage fleet assets effectively; Needs Driven Fleet size and composition will be determined by the City s service delivery requirements Innovative Innovation is encouraged in the delivery of solutions that meet the corporate and fleet management objectives in a more effective and sustainable way, thus driving continual improvements in value and service.
4 405-FLT-13: Fleet Asset Management Policy Page 4 of Policy This Policy and related Operational Procedures will collectively be known as The City of Regina Fleet Asset Management Policy and will be guided by the following policy directives: 5.1 Fleet Definition & Classification All assets fitting into one of the following three general group definitions shall be assigned to the fleet: a) Vehicles and Mobile Equipment all licensed or unlicensed vehicles, trailers and mobile equipment including dedicated attachments and permanently mounted allied equipment vehicles or equipment that are subject to standards of operation or maintenance as regulated by SGI or the National Safety Code for Motor Carriers all motorized non-permanent, non-dedicated attachments such as loader-mounted snow blowers b) Small Tools and Equipment all electric, hydraulic or gasoline powered hand-held tools such as chainsaws, weed trimmers, hedge trimmers, pole saws all motorized walk-behind handle bar equipment such as plate tampers, rollers, masonry/concrete saws, snowblowers, mowers and rototillers. small motorized equipment such as portable pumps, generators, and welders grounds equipment attachments such as sweepers, landscape rakes, aerators, PTO driven rotovators or mowers other non-mobile, non-motorized, non-attachment equipment assets such as trench shoring cages c) Miscellaneous Attachments non-motorized snow removal attachments such as front plows, underbody plows, wing plows/snow rids non-motorized construction attachments such as buckets, augers, rippers, jack hammers The City of Regina shall incorporate a detailed fleet classification scheme that provides for effective management of fleet assets. The Fleet Classification System shall: group fleet and equipment based on physical characteristics, function and application for the purpose of: fleet budgeting and planning monitoring costs, downtime, fuel consumption, and utilization preventative maintenance
5 405-FLT-13: Fleet Asset Management Policy Page 5 of 10 allow easy cross-referencing to other classification schemes for the purpose of comparing and benchmarking fleet performance with other organizations be flexible enough to accommodate all fleet vehicles and equipment, and also be intuitive so that any given vehicle or equipment fits only one class. 5.2 Fleet Identification Standards The standard fleet colours and markings described below are applicable to new fleet vehicles entering service. It is not intended that older vehicles are to be repainted or have decals replaced unless specific direction is given It is the policy of the City of Regina that all vehicles owned or leased by the City will be clearly marked as City of Regina vehicles unless specifically exempted Fleet vehicles shall use standard colours, decals, shapes and other markings applied in a manner that is uniform enough to create an image of recognition by the general public Standard Colours a) Automobiles and Light trucks - shall be factory standard white. Bodies above the frame and behind the cab shall be white. Other components or accessories may be finished according to the factory standard finish. b) Fire Apparatus and Emergency Response Vehicles upper cab colour shall be white (PPG: FBCH-2185); lower cab colour shall be red (PPG: FBCH-71528); cab upper and lower paint shall meet on the cab below the cab windshield and under the driver, passenger and crew door windows. c) Heavy equipment - shall be factory standard colour and finish. d) Heavy trucks - cab, hood and fenders shall be factory standard white. Painted portions of the truck chassis and underbody components shall be black in the manufacturer s paint and finish. Bodies above the frame and behind the cab shall be white. Other components or accessories may be finished according to the factory standard finish. e) Trailers - shall be factory standard white. Painted portions of the trailer chassis and under-body components may be black in the manufacturer s paint and finish. Bodies and accessories above the frame shall be white. Other components or accessories may be finished according to the factory standard finish. f) Transit Buses base body colour for all buses shall be white; conventional bus exterior body striping shall be a 10 reflective blue stripe (3M ) placed below the front windshield and side windows and a reflective yellow stripe (3M ) placed onto the blue stripe, 1/2 inch below the top of the blue stripe; paratransit exterior body side striping shall be a total width of 7" as follows: 1 1/2" blue (top and bottom), yellow 3" (centre) with spacing of 1/2" between the yellow and blue stripes. g) Turf and light industrial equipment - shall be factory standard colour and finish.
6 405-FLT-13: Fleet Asset Management Policy Page 6 of Logos and Other Decals a) Logos and other decals applied on all fleet vehicles and mobile equipment shall comply with the Corporate Identity Guidelines. b) No other decals, other than those applied by the manufacturer, shall be applied. c) Decals should be placed on metal whenever possible, and shall be fitted in a professional manner with no wrinkles, creases or air bubbles High Visibility Markings a) High visibility markings shall use consistent colours and shapes and be applied in a uniform manner. b) Markings should be placed on metal whenever possible, and shall be fitted in a professional manner with no wrinkles, creases or air bubbles. c) Specific application details may vary by class of equipment, model year and manufacturer Lighting Standards a) Standardized Light Levels for the application of safety lighting systems shall be developed for use on fleet vehicles and equipment. b) Light Levels shall be designed to provide the motoring public with ample advance warning of the presence of a potential hazard. c) Lighting equipment used shall provide the required visibility during daylight hours of operation Identification Numbers Two Fleet Services identification number labels shall be placed on each vehicle or equipment. Location of identification numbers: a) Automobiles and Light trucks one each side, upper rear corner of front fenders, and one at left rear upper corner of tailgate. b) Fire Apparatus and Emergency Response Vehicles one each side c) Heavy equipment one each side, placed beneath City logo decal d) Heavy trucks one each side, upper rear corner of front fenders (or hood) e) Trailers one each side, placed beneath City logo decal f) Transit buses conventional transit bus unit numbers shall be placed above the front entrance door, drivers side window, and top right rear of the bus; paratransit bus unit numbers shall be placed top center front and rear and on each front fender. g) Turf and light industrial equipment one each side, placed beneath City logo decal or other conspicuous location. 5.3 Fleet Management Information System (FMIS) A tremendous amount of information is recorded and compiled in the normal course of procuring, operating and maintaining the City s fleet. The ability to accurately accumulate, track, report, and analyze fleet cost and utilization information is necessary for effective decision making with regards to planning, directing, and controlling asset management and service delivery activities.
7 405-FLT-13: Fleet Asset Management Policy Page 7 of The FMIS shall maintain accurate and consistent vehicle data to satisfy internal and external reporting requirements in a timely manner THE FMIS shall use industry standard fleet terminology and data fields to allow for benchmarking fleet performance against other similar fleet organizations The FMIS shall provide for: detailed vehicle inventory information vehicle utilization and downtime tracking work planning and scheduling parts inventory management and processing repair work order management maintenance history review and updating billing and cost analysis The FMIS shall allow fleet users to access utilization, fuel consumption, billing, and detailed vehicle information relating to their assigned vehicles. 5.4 Vehicle Acquisition Replacement Vehicles a) Vehicle replacement cycles shall be developed through life-cycle analysis that predicts the optimum replacement time. This analysis considers depreciation, maintenance, fuel consumption, vehicle preparation costs, overhead, and resale value. b) The City of Regina has adopted a Replacement Zone program of managing the replacement life cycles of fleet units. It is the policy of the City of Regina that with few exceptions, only those vehicles meeting the Replacement Zone criteria, designed for a respective class, shall be evaluated for replacement. c) A Replacement Zone shall be established for each fleet class based on: economic life of the asset operating and maintenance cost trends. downtime sensitivity and trends The optimum replacement cycle will be the mid-point of the replacement zone 3 or 5 year age range and/or utilization range 80% to 120% of optimum d) The replacement of fleet vehicles or equipment that do not meet the minimum utilization standards shall be justified by a business case approved by the Fleet Governance Committee.
8 405-FLT-13: Fleet Asset Management Policy Page 8 of 10 e) The upgrading of fleet vehicles or equipment with enhanced replacements shall be required to follow the same approval process as for additional vehicles as described in section Additional Vehicles a) It is the policy of the City of Regina that any increase to the size of the fleet, whether by purchase of new units or by retention of replaced units, must be supported by a business case that justifies the need for the increase. b) The user department shall be responsible for requesting any capital funding required. Fleet Services shall provide the user department with an estimate of the funding required ensure all fleet additions undergo a due diligence scrutiny to confirm the need for the equipment 5.5 Financial Management The City of Regina utilizes an Internal Service Fund (ISF) or Costing Fund approach to allocate the costs of vehicles, goods, and services provided by the Fleet Services department to other departments, on a cost recovery basis. The Costing Fund is zero-budgeted it generates enough revenue from charges to customers to fully recover all expenses, neither making nor losing money Capital Funds a) Dedicated reserve fund accounts and capital accounts have been established for the Civic, Transit, Fire, and Small Tool fleets. b) Vehicle depreciation costs billed to user departments are credited to the reserve accounts; the depreciation charges are designed to ensure that the dollars required to replace a vehicle are in the reserve fund when its replacement is due. c) Each year upon approval of the General Capital Budget, the approved amounts are debited from the reserve accounts and credited to the corresponding capital account for each fleet. d) Eligible capital account debits (expenses) include vehicle purchase cost, vehicle commissioning (make-ready) costs, costs of acquisition (specification preparation, inspections), decommissioning costs for vehicles being disposed of, and approved rebuild/refurbish projects that extend the original useful life of the vehicle. e) Unless otherwise directed by City Council, the Fleet Replacement Reserve shall not be used to fund the acquisition of additional vehicles or equipment. f) The capital funding required for the acquisition of additional or enhanced replacement vehicles shall be included in the user department s capital budget submission. In the case of enhanced replacements, the capital funding requested by the user department shall be the amount in excess of the straightforward replacement cost of the unit being replaced. Fleet Services shall provide the user department with an estimate of the funding required.
9 405-FLT-13: Fleet Asset Management Policy Page 9 of Operating Funds a) The Fleet Services department utilizes a cost charge-back system to recover the cost of providing its services. b) The charge-back system shall be designed to promote recognition and control of fleet costs by enabling and encouraging fleet users to monitor and exercise some control over their costs by properly managing the size of their assigned fleets and how the vehicles are being operated. 5.6 Fleet Standardization Standardizing the vehicle platforms that comprise a fleet offers several benefits, including improved maintenance servicing, streamlined parts and fluids inventories, enhanced operational efficiency and driver safety, and expedited specification and bid processes It is the policy of the City of Regina that fleet vehicles shall be standardized to greatest extent possible while complying with the requirements of the Purchasing Policy and meeting the operational needs of the City. 5.7 Fleet Disposal All vehicles are to be sold in a timely and efficient manner, giving due consideration to prevailing market forces The disposal of vehicles must be consistent with any applicable City bylaws and policies Prior to disposal, all vehicles should be inspected and appropriate actions taken to assure maximum return on investment. Possible actions could include making minor repairs, cleaning the unit, and deciding on inclusion/non-inclusion of attachments, accessories, manuals, surplus spare parts, etc All City logos, decals and other markings must be removed prior to disposal. 6.0 Roles & Responsibilities 6.1 Fleet Services Effective management of all fleet assets Administer this Policy, including the development and implementation of related operational guidelines and procedures. 6.2 User Departments Meet with Fleet Services to review replacement plans for assigned vehicles Advise Fleet Services of any changes to their fleet vehicle needs Prepare justifications for additions to the fleet, enhanced replacements, and the replacement of vehicles that do not meet minimum utilization standards. 6.3 Fleet Governance Committee Approve this policy and subsequent revisions from time to time Review and evaluate business cases for additions to the fleet.
10 405-FLT-13: Fleet Asset Management Policy Page 10 of Review and evaluate business cases for retention of under utilized vehicles. 7.0 Related Policies & Guidelines FLT-11 Fuel Management Policy FLT-11 Corporate Fleet Safety Program FLT-11 Fleet Maintenance Policy FLT-12 Fleet Utilization Standards - Corporate Identity Guidelines - Purchasing Policy - Operational Procedure documents created to describe the detailed rules, procedures and processes required by this policy. 8.0 Reference Material - Occupational Health & Safety Act and Regulations - The Traffic Safety Act - The Commercial Vehicle and Drivers (Record-Keeping) Regulations - National Safety Code for Motor Carriers - GreenFleet Plan 9.0 Revision History Date November 6, 2013 Description of Change Initial release (Re)-Approval Required (y/n)
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