HomeMy WebLinkAboutAgenda - 06-16-2016 - 2 - Vehicle Replacement Schedule for FYF1617 ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 16, 2016
Action Agenda
Item No. 2
SUBJECT: Vehicle Replacement Schedule for FY 2016-17
DEPARTMENT: County Manager, Finance and
Administrative Services, and
Asset Management Services
ATTACHMENT(S): INFORMATION CONTACT:
1. Vehicle Replacement Schedule Bonnie Hammersley, (919) 245-2300
Travis Myren, (919) 245-2308
Gary Donaldson, (919) 245-2453
Paul Laughton, (919) 245-2152
Jeff Thompson, (919) 245-2658
PURPOSE: To review and discuss the recommended Vehicle Replacement Schedule for
FY2016-17.
BACKGROUND: In FY 2012-13, the Commissioner Approved Budget established a second
Internal Service Fund, for County vehicle purchases. Internal Service Funds are an accounting
device used to accumulate and allocate costs internally among the functions of the County.
Historically, the County has used an internal service fund to account for one activity - its
employee dental insurance program. With the creation of this Vehicle Replacement Fund,
vehicles purchased occur through this fund instead of the departments' operating budgets. The
change centralizes vehicle purchases, which increases the effectiveness of vehicle performance
and cost monitoring.
The current internal services fund is still being subsidized by the general fund. In the spring and
and summer of 2016, staff will be working with a recognized fleet services consulting firm to fully
optimize the internal services fund model for Orange County. This optimization will influence
recommendations for the internal services fund starting in FY 17-18.
Recommendations for vehicle replacements are based on vehicle age, mileage, maintenance
costs, fuel efficiency, and departmental mission need. The average age and accumulated
mileage of the recommended replacements are 12 years and 161,754 miles, respectively. The
vehicle replacement process is a dynamic process that unfolds over the course of a year.
During the replacement cycle vehicles originally listed for replacement may ultimately not be
selected for replacement as other fleet vehicles become a higher priority for replacement.
The FY2016-17 recommendation involves public safety vehicles only in anticipation of the
significant structural optimization expected within the Fleet Internal Services Fund to be
recommended for FY2017-18 and beyond.
Attachment 1 outlines the recommended vehicle requests for FY 2016-17. Pricing is based
upon the current state contract rates. If the Board of Commissioners approve of this
recommended list, the financing amount of$789,722 will be included in the FY 2016-17 Budget
Ordinance to allow these vehicles to be ordered and placed into service in the early fall of 2016.
FINANCIAL IMPACT: If approved by the Board of Commissioners, the vehicles listed on the
Vehicle Replacement Schedule, totaling $789,722, will be included in the planned Fall 2016
Financing package.
SOCIAL JUSTICE IMPACT: There are no Social Justice Goal impacts associated with this
item.
RECOMMENDATION(S): The Manager recommends that the Board accept the recommended
Vehicle Replacement Schedule for FY2016-17, and authorize staff to include this as part of
the FY 2016-17 Budget Ordinance.