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Fleet Replacement Fund Survey Summary <br /> EWEB Lane Coun Multnomah Count <br /> Contacts <br /> Name Kevin McCarthy _Phil Guyette Tom Guine <br /> Phone 341-3778 341-8583 503-248-5353 <br /> De artment Sup ort Services ~ <br /> Management <br /> Ownershi of fleet Electric Division Fleet Services Fleet Services _ _ <br /> Location of Capital budget - no separate reserve Investment account for each vehicle Fleet management fund <br /> re lacement $ <br /> Tracked by vehicle, No real replacement strategy Vehicle -through an investment account Reserve is pooled -they collect on vehicle <br /> or fund? basis, but buy based on current need. <br /> What drives the Annual budget process and "negotiating" Automatic transfer payments Monthly replacement charge and annual <br /> process? between Fleet Manager and section update <br /> supervisors <br /> How are upgrades Same as replacements Go to Board for upgrades. For additions, User pays difference for upgrades <br /> and additions user body comes to Fleet and <br /> handled? appropriations are made through user <br /> body. <br /> Fund Level <br /> How replacement Year to year capital budget. Fleet manager Payment covers maintenance and The monthly replacement charge is <br /> fee is calculated and section supervisors put budget replacement, adjusted for inflation updated annually and includes the current <br /> together and the FM budgets capital for state price agreement cost divided by the <br /> purchases. Each year the supervisors number of expected years of operation - 9 <br /> submit requests for replacement and in most cases. There are 4 replacement <br /> "negotiate"with FM. rental schedule categories (A-D). <br /> Level of funds $600,000/$5-6 million (current value of $10.1 million/$19.9 million (current value of Ballpark: $2-3 million/$18 million (current <br /> versus value of fleet fleet) fleet) replacement cost) <br /> (estimated (10-12%) (50.8%) (11-17%) <br /> How is level Fleet software is used for annual planning. FM meets with auditor and Supports Finance office monifors reserves so they <br /> determined? Roughly $500,000/year results in about Services division manager have a minimum of 15% of value, <br /> 90% replacement, i.e., 90% of expected otherwise based on rental schedule <br /> replacement value is scheduled. <br /> How are fees They aren't is appropriated by budget code to Monthly "rent" is charged for a <br /> collected? purchase vehicle, then each month there is predetermined number of years. Often <br /> an automatic transfer of "rent" to Fleet don't replace at end of expected life, e.g, <br /> Services. 10 year vehicle lasts 14 years <br /> How are shortages They are negotiated between Fleet Generally works out fine Fleet Management deals with this <br /> handled? Manager and section supervisors. <br /> Purchases are sometimes postponed. <br /> is the size adequate/ Yes Yes Yes, from experience it's been working <br /> appropriate? <br /> Comments <br /> They use fleet software to assist with Reserve is invested and interest is used for Reserve is intended not to have more than <br /> annual budgeting unforseen maintenance they need to have in any given year <br /> Their method requires more work on fleet Each year the fund is in the high 90 <br /> and supervisor end -more "negotiating" - percentile of what is needed <br /> but it keeps the fund relatively level and <br /> low <br /> I <br /> <br /> i <br /> <br /> i <br /> <br /> I <br /> LCOG T:\INFRASTRUCTURE\EUGENE FLEET\SURVEY\SunrSumm.xls Page 1 11/15/97 12:25 PM <br /> <br />