Loading...
HomeMy WebLinkAbout05 - City Council Policy F-9 (City Vehicle/Equipment GuidelinesTO: CITY OF NEWPORT BEACH City Council Staff Report October 27, 2015 Agenda Item No. 5 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Municipal Operations Department Mike Pisani, Director 949-644-3055, mpisaniC@newportbeachca.gov PREPARED BY: Cynthia Owens, Administrative Manager TITLE: City Council Policy F-9 (City Vehicle/Equipment Guidelines) ABSTRACT: An amendment to City Council Policy F-9 (City Vehicle/Equipment Guidelines) is proposed which would extend the useful life of certain City vehicles and equipment items. RECOMMENDATION: a) Approve Resolution No. 2015-72, A Resolution of the City Council of the City of Newport Beach, California, Amending City Council Policy F-9 (City Vehicle/Equipment Replacement Guidelines); and b) Direct staff to return to the Finance Committee and then to a future Council meeting to review useful lives of vehicles and equipment. FUNDING REQUIREMENTS: None at this time; however, if the policy is revised as proposed, the internal service fees collected from each department for vehicle and equipment replacement will be adjusted based on an increased life span of some vehicles and equipment. This change is estimated to result in an annual savings of approximately $1,039,000 to the City's General and Enterprise Funds. DISCUSSION: At the City Council Study Session of October 13, 2015, the City Council reviewed changes to the F-9 Policy (Attachment A). The Council directed staff to continue to review the policy and look to extend the useful life of the vehicles and equipment. Staff has begun that process which may take several months to complete. In the interim, the revisions to the policy as presented will provide staff the direction necessary to begin City Council Policy F-9 (City Vehicle/Equipment Guidelines) October 27, 2015 Page 2 the budget process and save over one million dollars in rental rates to the General and Enterprise Funds. Additional changes were made to the language to clarify how and when the life of a vehicle will be extended. City Council Policy F-9 (Attachment A) establishes definitive standards for the replacement of City vehicles and equipment. This policy ensures that the full service life of each vehicle or piece of equipment is utilized to its fullest potential. Additionally, it provides a timeline for funding the replacement of these items and implements uniform guidelines for all departments. This policy was initially established on December 14, 1992 and has been revised three times since its inception (1994, 1995 and 2001). The City has an Equipment Maintenance Internal Service Fund that is utilized to collect "rents" from the departments in order to pay for annual maintenance as well as equipment replacement of City vehicles and large pieces of equipment. Each year the Municipal Operations Department and Finance Department work with each department to determine their operational needs. Vehicles and equipment that have reached their useful life based on age of the vehicle, maintenance costs, mileage and fuel efficiency are scheduled for replacement through the Equipment Maintenance Fund. The Equipment Maintenance Fund supports 7.5 full-time employees who are responsible for maintaining approximately 340 vehicles and other pieces of equipment managed by the Municipal Operations Department. Additionally, the Police Department has two fleet mechanics separate from the Municipal Operations Department and a budget of $1,970,313 funded through the General Fund. The proposed policy changes would affect the useful life of police vehicles and equipment as well as all other City vehicles/equipment. There are two components to the fund: 1) the Equipment Maintenance Premium and 2) the Equipment Replacement Premium. City Council Policy F-9 refers to the Equipment Replacement Premium and would not affect the Maintenance Premium. Currently, many City vehicles and pieces of equipment exceed the life and/or mileage guidelines listed in the current F-9 Policy. These vehicles are still mechanically functional and have low annual maintenance costs. It is recommended that Council Policy F-9 be updated to reflect the longer useful life the City is attaining from its vehicles and equipment. Increasing mileage and/or expected years of service of vehicles and equipment would have a significant financial benefit. If the policy is revised as proposed, City departments will see a reduction in their budget in the form of reduced replacement rates. The City will capture the replacement cost of the vehicles over a longer period of time, which will result in an estimated annual cost savings to the General and Enterprise Funds of $1,039,000. Clarifying language has been added to the policy in regards to frontline and reserve equipment in the Fire Department. After a fire engine or truck has reached its useful life, the unit may be placed into reserve status for five to fifteen years. This allows 5-2 City Council Policy F-9 (City Vehicle/Equipment Guidelines) October 27, 2015 Page 3 additional equipment available for the Fire Department in case of a major emergency or to replace a frontline unit that is out of service for repair or maintenance. As an example, the City Council approved the purchase of two new fire engines in February. The engines are expected to be delivered around the end of the year. When the units are placed in service in early 2016, they will replace 2003 and 2005 American LaFrance fire engines that currently have 91,870 and 64,013 miles on them, respectively. The two American LaFrance engines will become reserve units and replace two 2001 engines currently used in that capacity. These two units have met or exceeded the service life listed in the current policy (10 years). If the policy is revised, they will remain in a reserve status until 2024, when the next engines (2011 models purchased in 2010) are due for replacement. Although the mileage on these vehicles appears low based on a normal consumer vehicle, it is important to note that fire equipment typically reaches the end of its frontline status as it is in service every day. Keeping equipment in frontline status, after its recommended useful life, will lead to increased downtime for maintenance and repair. Other major changes to Council Policy F-9 include: • Extending the life/mileage of police motorcycles, sedans and wagons, SUV's, pickup trucks, vans, heavy trucks, welders, saws, pumps, radios and beacons, and fire engines; • Adding a category for police detective/plain vehicles; • Adding ATVs and SUVs to the equipment list; • Adding personal watercraft to the equipment list; • Eliminating small emergency boats from the proposed policy; • Adding Reserve categories for fire engines, fire trucks, and ambulances; and • Eliminating refuse trucks, paint stripers and refuse transfer trailers, as the City no longer operates these programs in-house. The Finance Committee reviewed this item at their August 13, 2015, meeting and recommended approval of the proposed changes to the City Council. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 5-3 City Council Policy F-9 (City Vehicle/Equipment Guidelines) October 27, 2015 Page 4 ATTACHMENTS: Attachment A - Redline of City Council Policy F-9 Attachment B - Resolution 5-4 ATTACHMENT A CITY VEHICLE/ EQUIPMENT REPLACEMENT GUIDELINES PURPOSE F-9 To establish the policy to iensure that the full service life of each City vehicle or item of equipment is achieved utilized to its fullest potential, provide for a funding timelines and implement uniform guidelines be implemented -among all departments. POLICY It shall be the policy of the City that the funding and replacement of all motor vehicles shall be normally based on the expected service life of the vehicle described on the following schedule: Police Patrol/Traffic Vehicles 75,000 miles or 4 years Police Motorcycles 6075,000 miles or 5 years Police Detective/Plain Vehicles 80,000 miles or 8 e'er Beach Vehicles ATV's 4 Years Sedans and Station Wagons SUV's 80120,000 miles or 812 years Pickup Trucks (1/4 to 3/4 Ton) 85100,000 miles or 9-10 years Vans, excluding Paramedic Vans 80100,000 miles or 8-10 years Paramedic Vans/ Ambulances 80100,000 miles or 6-8 years Reserve Ambulances 4 e'er Heavy Trucks (1 Ton and larger) Refuse Trucks 4-00120,000 miles or 9-10 years 100,000 miles or 8 years Paint Stripers 9 years Beach Cleaners 8 years Street Sweepers 710 years Small Boats/Personal Watercraft X11 1-a',v, rgene Rets 10 years 12 Large Emergency Boats years 25 years Heavy Equipment 10 years or 5,000 hours Trailers Refuse Transfer- Trailers X10 years 6 Vactors/Sewer Rodders years 10 years Welders, Saws, Pumps 10-13 years Transfer Equipment (Radios/ Beacons) 8-10 years Fire Engines - Frontline 10-13 years Fire Trucks - Frontline 15 years Fire Engine - Reserve 5-7 e'er 1 5-5 F-9 Fire Truck - Reserve 10-15 Afterthese milestene Fire engines, trucks and ambulances are reaehe4placed within stations as frontline vehicles when they are purchased. They will remain in a frontline status until the expected useful life is over. At that time, the engines and trucks will be evaluated to determine if they should continue in frontline status or placed in reserve status for an additional period of time as described above. ,4heThe GeneFal SeFvieesMunicipal Operations Department shall inspect the equipment annually to determine the appropriateness of replacing tl,e F-acters to ee 1Nn�eeach piece of equipment in conjunction with the assi elt apartment. All PeR- vehicles shall be replaced based on, but a4ae-not limited to, the following factors: expected service life, mileage, lifecycle maintenance and upkeep -costs, fuel efficiency, purchase price cost), environmental rating, etc. The Municipal Operations Department, in conjunction with the affected Department may choose to extend the life of the equipment based on the factors above. The City will actively seek opportunities to use cleaner burning fuels and higher efficiency vehicles when possible. Should the expected life of the equipment be less than expected, the Municipal Operations Department in conjunction with the Finance Department and the assigned Department will make a recommendation to the Cily Manager or his designee on the disposition and replacement of equipment. Adopted - December 14,1992 Amended - January 24,1994 Amended - March 27,1995 Amended - May 8, 2001 Amended - October xx, 2015 Formerly F-26 2 5-6 ATTACHMENT B RESOLUTION NO. 2015-72 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING CITY COUNCIL POLICY F-9 (CITY VEHICLE/EQUIPMENT REPLACEMENT GUIDELINES) WHEREAS, the City of Newport Beach ("City") is governed, in part, by its Charter, Municipal Code and adopted City Council Policies; and WHEREAS, the City Council adopted City Council Policy F-9 (City Vehicle/Equipment Guidelines) to ensure that the full service life of each City vehicle or item of equipment is utilized to its fullest potential; and WHEREAS, City Council Policy F-9 provides a funding timeline for replacing City vehicles and specific equipment; and WHEREAS, City Council Policy F-9 implements uniform replacement guidelines for City vehicles and equipment across all City Departments; and WHEREAS, the City desires to amend City Council Policy F-9 to extend the life/mileage of police motorcycles, sedans, wagons, SUVs, pickup trucks, vans, heavy trucks, welders, saws, pumps, radios and beacons, and fire engines; and WHEREAS, the City desires to further amend City Council Policy F-9 to include categories for police detective/plain vehicles, ATVs, SUVs, and personal watercraft to the equipment list; and add reserve categories for fire engines, fire trucks and ambulances; and WHEREAS, the City desires to further amend City Council Policy F-9 to eliminate small emergency boats, refuse trucks, paint stripers, and refuse transfer trailers from the program. NOW, THERFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby amends City Council Policy F-9 as shown in Exhibit 1, which is attached hereto and incorporated herein by reference. Section 2: All prior versions of City Council Policy F-9 are hereby repealed. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, clause or phrase hereof, irrespective of the fact that any one (1) or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. 5-6 Exhibit 1 F-9 Section 4: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 5: Except as expressly modified in this resolution, all other City Council Policies, sections, subsections, sentences, terms, clauses and phrases set forth in the Council Policy Manual shall remain unchanged and shall be in full force and effect. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify the vote adopting this resolution. ADOPTED this 27" day of October, 2015. Edward D. Selich Mayor ATTEST: Leilani I. Brown City Clerk Attachment: Exhibit 1 — Amended City Council Policy F-9 5-7 EXHIBIT 1 F-9 CITY VEHICLE/ EQUIPMENT REPLACEMENT GUIDELINES PURPOSE To establish a policy to ensure that the full service life of each City vehicle or item of equipment is utilized to its fullest potential, provide for a funding timelines and implement uniform guidelines among all departments. POLICY It shall be the policy of the City that the funding and replacement of all motor vehicles shall be normally based on the expected service life of the vehicle described on the following schedule: Vehicle/Equipment Schedule for Replacement Police Patrol/Traffic Vehicles 75,000 miles or 4 years Police Motorcycles 75,000 miles or 5 years Police Detective/Plain Vehicles 80,000 miles or 8 years Beach Vehicles/ ATVs 4 years Sedans/ Station Wagons/ SUVs 120,000 miles or 12 years Pickup Trucks (1/4 to 3/4 Ton) 100,000 miles or 10 years Vans 100,000 miles or 10 years Ambulances (commercial chassis) 100,000 miles or 8 years Ambulances - Reserve 4 years Heavy Trucks (1 Ton and larger) 120,000 miles or 10 years Beach Cleaners 8 years Street Sweepers 10 years Small Boats/Personal Watercraft 10 years Large Emergency Boats 25 years Heavy Equipment 10 years or 5,000 hours Trailers 10 years Vactors/Sewer Rodders 10 years Welders, Saws, Pumps 13 years Transfer Equipment (Radios/ Beacons) 10 years Fire Engines - Frontline 13 years Fire Trucks - Frontline 15 years Fire Engine - Reserve 5-7 years Fire Truck - Reserve 10-15 years Fire engines, trucks and ambulances are placed within stations as frontline vehicles when they are purchased. They will remain in a frontline status until the expected useful life is over. At that time, the engines and trucks will be placed in reserve status for an additional period of time as described above. 5-8 Exhibit 1 F-9 The Municipal Operations Department shall inspect the equipment annually to determine the appropriateness of replacing each piece of equipment in conjunction with the assigned Department. All non -emergency vehicles shall be replaced based on, but not limited to, the following factors: expected service life, lifecycle maintenance costs, fuel efficiency, purchase price (cost), environmental rating, etc. The City will actively seek opportunities to use cleaner burning fuels and higher efficiency vehicles when possible. Should the expected life of the equipment be less than expected, the Municipal Operations Department in conjunction with the Finance Department and the assigned Department will make a recommendation to the City Manager or his designee on the disposition and replacement of equipment. Adopted - December 14,1992 Amended - January 24,1994 Amended - March 27,1995 Amended - May 8, 2001 Amended - October 28, 2015 Formerly F-26 5-9