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HomeMy WebLinkAbout06 - City Council Policy F-9 (City Vehicle/Equipment Guidelines) 6-1 NEWPORT BEACH City Council Staff Report CITY OF February 9, 2016 Agenda Item No. 6 ABSTRACT: An amendment to City Council Policy F-9 (City Vehicle/Equipment Guidelines) is proposed which would clarify the policy and its purpose. RECOMMENDATION: Approve Resolution 2016-2, A Resolution of the City Council of the City of Newport Beach, California, Amending City Council Policy F-9 (City Vehicle/Equipment Replacement Guidelines). FUNDING REQUIREMENTS: None DISCUSSION: At the City Council Meeting of October 27, 2015, the City Council reviewed and approved changes to the City Council Policy F-9 –City Vehicle/Equipment Guidelines to extend the life of the City’s fleet, eliminated several type s of equipment the City no longer owns and added vehicles to the Equipment Maintenance Fund that were previously not included. The revision to Policy F-9 on October 27, 2015 resulted in an one time savings of approximately $1,039,000 to the City’s General and Enterprise Funds. The annual savings is estimated to be approximately $335,000. The City Council requested that the Finance Committee review Policy F-9 to determine if additional savings are available. After a thorough review of the policy and the financial resources necessary to maintain the Equipment Replacement Fund, staff is not recommending any changes to the useful lives of the equipment. This item was TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Municipal Operations Department Mike Pisani, Director 949-644-3055, mpisani@newportbeachca.gov PREPARED BY: Carol Jacobs, Assistant City Manager 949-644-3313 TITLE: City Council Policy F-9 (City Vehicle/Equipment Guidelines) City Council Policy F-9 (City Vehicle/Equipment Guidelines) February 9, 2016 Page 2 6-2 presented to the Finance Committee on December 10, 2015 and the Committee is recommending the changes as shown on Attachment B. City Council Policy F-9 (Exhibit 1 to 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 four times since its inception (1994, 1995, 2001, and 2015). The proposed revisions to Policy F-9 are to clarify the language regarding its intent and purpose. The most significant purpose of the policy is to systematically plan for and fund the replacement of vehicles and equipment owned by the City. This process allows the City to put “aside” a little bit every year so that when the vehicle reaches the end of its useful life, funds are available to replace the vehicle. Equipment Maintenance Fund 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 future equipment replacement of City vehicles and large pieces of equipment. Each year the Municipal Operations Department and Finance Department work with other City Departments to determine operational needs The Equipment Maintenance Fund supports 7.5 full-time employees who are responsible for maintaining approximately 336 vehicles and other pieces of equipment managed by the Municipal Operations Department. The following table identifies the age of the equipment in the Equipment Replacement Fund. Age Pieces of Equipment Over 25 years* 15 Over 20 years 24 Over 15 years 43 Over 10 years 203 Under 10 years 51 *the oldest piece of equipment is a 1963 Wheel Trailer The average piece of equipment in the Equipment Replacement Fund is 33 months over its useful life as defined in the F-9 Policy. This is a result of the careful analysis of each piece of equipment and the needs of the department. Additional language is included in the draft Policy and memorializes action annually taken by Equipment Maintenance Division staff. Prior to preparation of the annual budget, Division staff examines vehicles and equipment that exceed their recommended service life, and decide on retention or replacement based upon usage, maintenance costs, and the general condition of the equipment. City Council Policy F-9 (City Vehicle/Equipment Guidelines) February 9, 2016 Page 3 6-3 In addition, each year the Finance Director reviews the financial health of the Equipment Maintenance Fund. If it is determined the fund has a surplus, the Finance Director working in conjunction with the Municipal Operations Director may reallocate funds. Over the last three fiscal years, the City has transferred almost $14,000,0000 from the Equipment Replacement Fund to other funds including the Facilities Financial Planning Reserve, IT Strategic Fund, Fire Equipment Fund, 800 MHz Fund, Compensated Absences, Workers’ Comp and General Liability Reserve Funds. Police Department – Equipment Replacement Fund 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. 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. The Police fleet consists of 118 pieces of equipment. Age Pieces of Equipment Over 25 years* 3 Over 20 years 1 Over 15 years 2 Over 10 years 9 Under 10 years 103 The Police Department’s fleet replacement thresholds for patrol vehicles, motorcycles and detective/plain vehicles are based on several factors. The two most important factors affecting vehicle service life are 1) In-Service Time and 2) Wear and Tear. Police Department Vehicle In-Service Time: A conservative calculation using minimum daily staffing numbers compared to patrol black-and-white vehicles available shows they are in active use for 11.1 hours per 24- hour day. That equates to a “Vehicle Utilization Rate” of 46.0%. The Vehicle Utilization Rate is defined as the percentage of a 24-hour day that a vehicle is in active use. A comparison between the service life of a police patrol vehicle and a privately owned family vehicle can be made by calculating a Vehicle Utilization Rate for both types of vehicle. Example: If a family vehicle is in active use for two hours per day, its Vehicle Utilization Rate would be 8.3% (2 hours of a 24-hour day). For every one year a family vehicle is in service, a patrol vehicle is in service for 5.5 years. Expressed as total service life, four years of patrol utilization is equal to 22 years of family vehicle utilization. City Council Policy F-9 (City Vehicle/Equipment Guidelines) February 9, 2016 Page 4 6-4 Wear and Tear: Mileage is not the most important measure for determining service life for public safety vehicles. Overall wear and tear and in-service time are the most important factors to be considered. For Police Department vehicles, wear and tear is composed of mainly two elements: 1) operating conditions and 2) installed equipment. Police vehicles are subject to extreme operating conditions far beyond those affecting the average family car. Pursuit driving/braking and routine high speed driving/braking, both characterized by repeated sudden acceleration and deceleration, and carrying heavy payloads are examples of common patrol vehicle operating conditions. Another very significant factor affecting service life is the long periods of engine idling that are required to support the added electronics and emergency lighting. Most police vehicles have added electronic equipment that cause a significant drain on the vehicle’s electrical system and require the vehicle to idle when not officers are handling a call for service. It is also critical to have the vehicle air conditioning running nearly continuously to keep the systems within operating temperature range. This continuous “run-time” significantly increases the wear and tear on the engine, electrical system and related components. In conclusion, the City Council annually reviews the list of equipment proposed for replacement as part of the budget process. In addition, during the annual review of the fund balance of the Equipment Replacement Fund, staff will provide the City Council with the funds moved from the Equipment Replacement Fund to other funds. 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). ATTACHMENTS: Attachment A - Resolution No. 2016-2 Exhibit 1 to Attachment A – Amended City Council Policy F-9 Attachment B - Redline of City Council Policy F-9 – City Vehicle/Equipment Replacement Guidelines ATTACHMENT A Resolution No. 2016-___ A Resolution of the City Council of the City of Newport Beach, California, Amending City Council Policy F-9 (City Vehicle/Equipment Replacement Guidelines 6-5 RESOLUTION NO. 2016-__ 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 clarify the language regarding its intent and purpose. 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. 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. 6-6 Resolution No. 2016-__ Page 2 of 2 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: 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 invalid or unconstitutional. Section 8: 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 9th day of February, 2016. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk Attachment: Exhibit 1 – Amended City Council Policy F-9 6-7 EXHIBIT 1 Amended City Council Policy F-9 (City Vehicle/Equipment Replacement Guidelines) 6-8 CITYVEHICLE / EQUIPMENT REPLACEMENT GUIDELINES PURPOSE: To establish a policy to provide a funding mechanism 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: The Municipal Operations Department shall inspect the equipment annually after the vehicle/equipment has reached its useful life – 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. 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 and condition 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 6-9 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. Adopted – December 14, 1992 Amended - January 24, 1994 Amended - March 27, 1995 Amended - May 8, 2001 Amended - October 27, 2015 Amended - February 9, 2016 Formerly F-26 6-10 ATTACHMENT B Redline of City Council Policy F-9 (City Vehicle/Equipment Replacement Guidelines) 6-11 6-12 6-13 6-14