Fleet Management Division. Sam K. Houston Jr. Chief, Fleet Management Division City of Jacksonville, Florida

Transcription

1 Fleet Management Division Sam K. Houston Jr. Chief, Fleet Management Division City of Jacksonville, Florida 1

2 Our Mission The mission of Fleet Management is to provide reliable, safe, and well maintained vehicles and equipment, and services to the city s agencies, independent authorities and state agencies. Fleet is committed to providing the highest quality of services in an efficient, timely and costeffective manner. 2

3 FLEET MANAGEMENT FACILITY 3

4 Operations Overview Hours of operations ( 7:00 AM 11:00 PM M - F) One major repair facility (90 Service Bays) and a modern tire shop Extensive support equipment (Lubrication & Repair service trucks, Wreckers, Mobile Fuel trucks, Machinist equipment and other related equipment) Motivated and well-qualified technicians (216 ASE, 10 EVT, 16 Welding Certifications) Fleet provides a comprehensive service with considerable cost savings to the taxpayers 4

5 Personnel Fleet had 183 funded positions in FY 2002 and currently have 127. Fleet turned-in 17 vacant budgeted positions in fiscal year 2010 and additional 5 for this fiscal year resulting in a budget reduction in salaries of $505,980. Personnel Position History Category FY 2009 FY 2010 FY 2011 # of Budgeted Positions # of Filled Positions # of Vacancy

6 FMD Organizational Chart Chief Fleet Management Division (1) Fleet Administrator (1) Support Functions Parts Manager (1), Financial Administrator (1), Equipment Coordinator (1) Repair & Maintenance-Light Vehicles Superintendent (1) Repair & Maintenance-Heavy & Off Road Equipment Superintendent (1) Warranty Specialist (1) Procurement Coordinator (1) Administrative Assistant Sr. (1) Supervisor (1) Light Vehicles Supervisor (1) Paint & Body and Accident Repairs Fueling Operations Fuel & Environmental Tech (2) Fleet Service Driver (2) General Service Tech (1) Supervisor Day & Night Shift (2) (Welding & Fabrication) Supervisor Day & Night Shift (2) (R & M) Heavy and Off-Road Equipment) Shop Foreman (1) (Machine & Hydraulic) Parts Lead Worker (2) Clerical Support Aide lll (2) Clerical Support Aide ll (3) Parts Clerk (5) Fleet Service Writer (2) Shop #10, #11, #8 Crew Leader Day & Night Shift (2) A&T Technicians (21) Shop #24 (Tire) Crew Leader (1) Tire Technicians (5) Shop #16 (AC) Crew Leader (1) A&T Technician (4) General Service Tech (1) Quality Assurance (QA) Supervisor (1) Shop #09 & #20 Vehicle Body Technician (1) General Service Tech (1) Auto Parts Clerk (1) Welder (6) Metal/Fiberglass Fabricator (1) Shop #12 (Heavy Equipment) Crew Leader (1) Heavy Vehicle Tech (10) General Service Tech (1) Shop #18 (Fire & Rescue Equipment) Heavy Vehicle Tech (5) General Service Technician (1) Shop #13/#40 (PM & Off-Road Equipment) Crew Leader (1) PM Technician (2) Heavy Off-Road Tech (5) General Service Tech (1) Machinist Lead worker (1) Machinist/Fluid Tech (7) Wrecker Fleet Service Driver (2) 6

7 Operating Budget $39,617,684 Significant Change to the Budget from Prior Year Fuel Budget is $20.9 million a17.8% increase Category Actual FY2009 Actual FY2010 Budget FY2011 Salaries 5,316,394 5,109,299 5,055,722 Benefits 1,554,708 1,830,349 1,846,782 Internal Services Charges (ITD, Indirect Cost, Legal, Bldg,) 2,415,997 2,703,208 2,368,714 Fuel (Motor Vehicle) 14,834,658 17,782,045 20,943,356 Parts, Oil & Lubricants, and Tires 5,652,998 6,312,184 6,150,000 Sublet Repairs (Accidents) 422, , ,000 Sublet Repairs (General) 1,260,662 1,347,045 1,400,000 Insurance (Gen., Misc., and Worker's Comp) 409, , ,881 Environmental Services 381, , ,500 Miscellaneous Services (Prof, Heating, R&M Bldg, Guard, Rentals, etc.) 413, , ,532 Operating Materials/Supplies 280, , ,197 Total Operating Budget 32,944,426 36,807,326 39,617,684 7

8 Fleet Operating Budget 1% 1% 1% 4% 1% 1% 13% 15% 5% 6% Salaries Internal Services Charges (ITD, Indirect Cost, Legal, Bldg,) Parts, Oil & Lubricants, and Tires Sublet Repairs (General) Environmental Services Operating Materials/Supplies 52% Benefits Fuel (Motor Vehicle) Sublet Repairs (Accidents) Insurance (Gen., Misc., and Worker's Comp) Miscellaneous Services (Prof, Heating, R&M Bldg, Guard, Rentals, etc.) 8

9 Fuel Budget FY 2011, $2,837,508 14%, $7,193,591 34%, $5,781,623 28%, $1,063,934 5%, $2,080,464 10%, $1,986,236 9% JSO JFRD PW GG Independent (JEA, JTA, State) Contract Haulers 9

10 Vehicle Replacement Budget Method used to determine when to replace a vehicle (mileage, age, maintenance cost per mile) Significant budget reduction FY 2010 and FY 2011 Able to do so by extending life of vehicle Have not seen a significant rise in maintenance cost Expect budget to go up due to 2 years life extensions 10

11 Vehicle Replacement Budget $$ 18,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Proposed Budget 16,421, ,188, ,789, ,381, ,424, ,553, Actual Budget 16,421, ,548, ,789, ,381, ,424, ,831, Fiscal Year 11

12 Priorities Optimize the Utilization of Vehicles & Equipment Reduce the Downtime of the Equipment Maintain the Productivity of our 90% of available hours Reduce the Overdue PM & Safety Inspections Focus on customer satisfaction and improved services (4.8 on 5.0 Scale) 12

13 Fleet Operations (Four Business Units) Repair and Maintenance Tire Operations Fueling Operations Parts/Material Support 13

14 Repair and Maintenance Service more than 5600 pieces of various equipment (police cars, fire & rescue, garbage packers, heavy trucks, off-road equipment, motorcycles, etc.) Services provided to City agencies as well independent agencies, and state agencies Performed 74,000 Work Orders in FY 2010 Billed 103,000 Labor Hours 14

15 Repair and Maintenance (cont) Services provided includes: a. Paint & Body repair b. In-depth maintenance for light vehicles c. Welding and Fabrication d. Heavy Truck and off-road equipments repairs e. Rebuilt and repair hydraulic system f. Perform in-house warranty repair for Ford, GM, Pierce and International (Only Government & Dealerships, not private sector) 15

16 Tire Services Installation and repair of car and heavy truck tires Front-end alignments Inventory management (tires & related supplies) Provides mobile tire services during the day Manage the sublet tire services Manage heavy truck tire Retread program Off-Road tires are sublet 16

17 Fueling Operations Total capacity of 240,000 gallons at 9 fuel sites Automated fueling system (records, date, time, site location, vehicle no., gallons, and mileage) Mobile Fuel Trucks 4 (1,300, 2,800, 4,000 and 9,000 gallons) all capable of dispensing fuel same as a fuel site Provides alternative fuel (B20 biodiesel and E85 ethanol) Dispensed 7.4 million gallons of fuel in FY 2010 Daily average dispensed: 8,200 gallons of diesel & 11,000 gallons of unleaded Enough fuel capacity to run the City days during an emergency (capacity and mobility are critical during emergencies) 17

18 Fueling Operations (cont) Repair and maintenance of all fueling stations Fuel management - Fuel is ordered daily Commercial fuel credit cards Provides offsite/mobile fueling night Provide fuel to disaster stricken areas during hurricane and other emergencies. 18

19 Parts/Material Supports Manages and maintains parts/material inventory ($1.0M Inventory and 6200 line items) Parts are bid out at a price of 40-60% below retail (example individual pays $200, fleet pays $100 and sell to agency for $135) Responsible for the acquisition of the City s vehicles and mobile equipment: Establishing the replacement criteria (Life cycle analysis) Writing bid specifications for the equipment Disposal of the surplus equipment. Title and tags 19

20 Efficiency = Cost Savings Initiatives Rightsizing City Vehicles (continuously) GM Impala vs. Ford Crown Victoria Comparable in performance and size The Impala is less expensive and more fuel efficient $5,500 less per vehicle 4 mpg fuel advantage Purchase 260 Impalas per year Fuel savings per vehicle is $677 20

21 GM Impala vs. Ford Crown Victoria (cont) Five year replacement plan savings (1,300 Patrol Vehicles) Year Computations (fuel & purchasing) Annual Savings 1st (260 X $677) + (260 X $5,500) $1,606,000 2nd (2 X 260 X $677) + (260 X $5,500) $1,782,000 3rd (3 X 260 X $677) + (260 X $5,500) $1,958,000 4th (4 X 260 X $677) + (260 X $5,500) $2,134,000 5th (5 X 260 X $677) + (260 X $5,500) $2,310,000 (same for 6th & 7th, yr, etc) 21

22 SUV vs. Sedan Twenty (20) SUV on the 2009 vehicle replacement list Replaced with Impala realized a savings of $ 264,500 Fewer SUV s are being purchased today. Sedan vs. Electric vehicle Fleet will continue exploring the viability of electric vehicles and hybrids Up-front Cost vs. Fuel Cost = Return On Investment = 12 to14 yrs 22

23 Managing Outsourced Activities Outsourced services (oil changes, transmission repairs/rebuilt, paint & body repairs, accident, tire services after hours) Outsourcing oil changes $12.75) and convenience (travel time & distance) Reduces the overall down time and maintenance cost Concentrate on standard repairs, and warranty work. Fleet outsources services that are more competitive in the marketplace. 23

24 Managing Outsourced Activities (cont) Continued reduction in sublet repairs since fiscal year 2002 ( $2.0M) At same time reducing payroll and overtime expenditures Focused on increased productivity of individual technicians and utilizing best practices 3,500,000 3,215,887 Total Sublet (Outsourced) Repairs Expenditures From $3.2M to $1.3M 3,000,000 2,544,025 2,500,000 2,122,481 2,000,000 1,756,367 $$ 1,500,000 1,169,489 1,089,134 1,158,986 1,260,662 1,347,045 1,000, ,000 - FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Fiscal Year 24

25 Salary Reductions Payroll reduced over $1M (from $5.7M to $4.7M). Fleet has increased employee to supervisor ratio to 8:1. Attrition of supervisors and not filling the position Salaries (Perm & Part Time) 6,000,000 5,000,000 5,738,430 5,609,630 5,577,619 5,912,447 5,705,664 5,427,519 4,873,080 4,869,651 4,697,960 4,000,000 $$ 3,000,000 2,000,000 1,000,000 - FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Fiscal Year 25

26 Overtime Reductions Monitored and eliminated unnecessary overtime Increased technician productivity Overtim e From $519,822 to $183, , , , , , , , , , ,695 $$ 300, , , , ,000 - FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Fiscal Year 26

27 Tire Service Efficiencies Utilization of retread tires (medium and heavy trucks) Cost 50% less = savings $118,263 annually Retread tires are never used on emergency vehicles nor the steering axle of non-emergency vehicles Removing new spare tires from the surplus vehicles = savings of $18,000 per year. 27

28 Tire Service Efficiencies (cont) Eliminated the outsourcing of front-end alignments & significantly reduced the outsourcing of heavy truck tire services Provide mobile tire services All of these efforts significantly reduced the cost of outsourcing of tire services (See next slide) 28

29 Tire Services 800, , From $758,594 to $187, , , $$ 600, , , , , , , , , , , , , FY 2002 FY 2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Fiscal Year 29

30 Fueling Service Efficiencies Offsite fueling at night (idle equipment) Thousands of man-hours saved annually (240 nights/yr x 30 trucks/night x 2 employees/truck x [1/2 to 1 hrs saved morning] x $25/hr wage) = 7200 hrs or 14,400 hrs or $180,000 to $360,000 savings per yr. Significant reduction in fuel usage (distance travel) Publish a vehicle idling policy to reduce fuel consumption 20% of the diesel fuel is consumed while idling Could result in a $500,000 savings annually Purchase unleaded fuel at $0.30-$0.40 below market price & diesel at $0.55-$

31 Other Cost Saving Measures Re-issue vehicle and repairs (JSO had a policy where a senior officer is issued a new vehicle and the older vehicle is passed down to a junior officer) Fleet established an extensive wash/detailing service for the re-issue vehicles as opposed to minor body repair/paint and upholstery Reduce sublet repairs on Body and Paint repairs, and Seat Cover & Upholstery See Graph 31

32 Body & Paint Repairs 450, , , , , , , , From $448,567 to $54,177 $$ 250, , , , , , , , , , FY 2002 FY 2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Fiscal Year 32

33 Seat Covers & Upholstery 250, , From $211,060 to $25, , , , , $$ 100, , , , , , , , FY 2002 FY 2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Fiscal Year 33

34 Other Cost Saving Measures (cont) Extending the interval of the LOF (Lube, Oil, Filter) 3000 miles to 4500 miles for light vehicle 6 months for heavy vehicle Savings of $111,800 per year. Established a four (4) vehicle pool at Ed Ball building and reduced the vehicle inventory by 70 vehicles * currently considering further expansion of vehicle pool 34

35 Other Cost Saving Measures (cont) Final stage of the Biodiesel production Capable of producing 2,000 gallons of B100 per week (savings of $2.00 per gallon) Production cost $1.00 (est.) Green Fuel (E85 Cost 15% less than Unleaded) 35

36 Insourcing Activities In-house warranty repairs generated a revenue of $276,100 in FY 2009 and $156,900 in FY 2010 Provided fuel and maintenance services to JEA, JTA, FDOT, Local Health-State Authority, City of Neptune, U.S. Marshall, and Contract Garbage Haulers) worth $8.3 millions in FY 2010 Fleet insourcing activities help to reduce the overall charges to our customers Insourcing helps to manage the peaks and valleys inherent in a repair and maintenance operation Net revenue is approximately $813,000 36

37 Challenging Issues Budget cuts while maintaining quality services to the customer Reduction in the vehicle replacement budget Managing the repair and maintenance of an aging fleet Aging work force with a national shortage of technicians Green initiatives: Expand the use of Alternative Fuel Vehicles (E85 fuel) and Electric Vehicles. 37

38 Reasons Not to Privatize Best Practice In-House Control with Strategic Outsourcing Only Two Fleets privatized in all of Florida: Ft. Lauderdale and Seminole County Ft. Lauderdale still has a Fleet Manager and staff to oversee privatized contract. Fleet Manager quoted as saying cost to run the fleet is now higher, but with less headaches. Three cities outsourced to another governmental fleet agency 38

39 Reasons Not to Privatize (cont) Private sector cannot do warranty repairs, only government and dealerships Fleet is currently performing repairs on 500 recalled vehicles Cannot depend on private sector during emergencies, i.e., hurricanes/disasters Fleet More than a Repair Facility: Fueling (nine sites and mobile fueling operations - night fueling) Acquisition & Disposal of Vehicle and Equipment-title and tags Total Fleet Support Facility, (welding, fabrication, machinist, off-road equipment, hydraulics, tires, heavy truck, fire apparatus, parts department, wrecker service) 39

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