FAS-009 - Fleet Policy_2017Subject: Fleet Management
Policy No.: FAS -009
Effective Date: 2017-01-23
Area(s) this policy applies to: Fleet Management
and Operations
Related Instruments: Vehicle Assignment Policy #
2107-012.02
Revision History:
Title: Fleet Policy
Category: Policy
M&C Report No.: 2017-012
Next Review Date: (3 years)2020-01-23
Office Responsible for review of this Policy:
Administrative Service / Fleet Division
Policy Sponsor: Commissioner Corporate Services,
Commissioner Finance and Administrative Services
Document Pages: This document consists of 9
pages.
This Policy rescinds the Vehicle Policy adopted on November 26th, 1990 as amended form time to time.
Common Clerk's Annotation for Official eRecord
Date of Passage of Current Policy: January 23, 2017
I certify that this Policy was adopted by Common Council as indicated above.
March 31, 2017
Common Clerk
Date Created: I Common Council Approval Date:
2017-01-17 1 2017-01-23
Date
Contact:
Fleet Services
TABLE OF CONTENTS
1. POLICY STATEMENTS.......................................................................................................................................
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2. SCOPE.............................................................................................................................................................
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3. LEGISLATION AND STANDARDS.......................................................................................................................-
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4. ROLES AND RESPONSIBILITIES..........................................................................................................................4-
4.1 Fleet Management............................................................................................................................
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4.2 Service Areas.....................................................................................................................................
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4.3 Employees........................................................................................................................................-
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5. MONITOR AND REVIEW.................................................................................................................................
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6. IMPLEMENTATION..........................................................................................................................................-
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7. AUTHORIZATION............................................................................................................................................
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8. RESOURCES....................................................................................................................................................
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9. PROCEDURES..................................................................................................................................................-
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9.1 Vehicle and Equipment Asset Acquisitions.........................................................................................
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9.2 Funding..............................................................................................................................................6-
9.3 Replacements through the use of Optimum Replacement Point (ORP) Analysis ..................................
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9.4 Library of Standard Vehicle and Equipment Assets Specifications.......................................................
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9.5 New Vehicle Training.........................................................................................................................-
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9.6 Pool of Vehicles.................................................................................................................................
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9.7 Temporary/Rental Vehicles................................................................................................................
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9.8 Service Level Agreements (SLA)..........................................................................................................
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9.9 Fleet Vehicle Appearance Standard....................................................................................................
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9.10 Vehicle and Equipment Fuel, Supplier Cards and Lubricant Supply ......................................................
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10.GLOSSARY.....................................................................................................................................................
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11. INQUIRIES.....................................................................................................................................................-
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12. APPENDICES.................................................................................................................................................
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1. POLICY STATEMENTS
In keeping with the principle that all vehicle and equipment assets are owned by the City of Saint John,
the following policy statement is adopted.
The City of Saint John recognizes that the taxpayers of this City expect and have the right to receive the
highest level of service at the lowest possible cost. The City recognizes the need to provide its human
resources with effective and efficient tools in the form of vehicle and equipment assets in order to
deliver the required services at the highest level and at the lowest overall cost.
Objectives
1. To ensure effective and efficient operations, control, utilization, safeguarding and management of
City of Saint John vehicle and equipment assets.
2. To ensure City of Saint John operators, supervisors and managers are aware of their responsibilities
with regard to all assigned vehicle and equipment assets.
3. To optimize and incorporate environmental initiatives into its vehicle and equipment asset related
daily activities, to benefit the community, municipality and the environment.
4. To standardize vehicle and equipment asset management to ensure vehicles are optimized and
safeguarded against loss and/or damage.
5. To adhere to an appropriate vehicle and equipment asset acquisition procedure.
Common Council acknowledges that existing vehicles that form part of the City's Fleet are subject to
ongoing (usually yearly) registration requirements and, in this regard, Common Council delegates
responsibility and authority to the City's Fleet Manager to attend to these registration requirements on
behalf of the City on an ongoing basis. Moreover, Common Council acknowledges that certain vehicles
within the City's Fleet are subject to certain regulatory requirements established by the Province of New
Brunswick, such as the execution of Affidavits or other documentation that confirms understanding of
and a commitment to such regulatory requirements as a pre -condition to registering or renewing the
registration of such vehicles. Common Council too delegates responsibility and authority to the City's
Fleet Manager to attend to such requirements at the administration level.
2. SCOPE
This Policy applies to The Fleet Reserve Fund as well as all vehicle and equipment assets owned by the
City of Saint John and its Utility ratepayers, and maintained by the Fleet division.
3. LEGISLATION AND STANDARDS
The City acknowledges the following Acts and regulations relate to Fleet:
• Province of New Brunswick Motor Vehicle Act
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• Province of New Brunswick Municipalities Act
• Federal Income Tax Act (CRA)
4. ROLES AND RESPONSIBILITIES
4.1 FLEET MANAGEMENT
• Assumes the roles and responsibilities of Asset Manager.
• Manages vehicle pools and assigned vehicles in collaboration with Service Area Management.
• Develops vehicle pool allocation standards.
• Maintains pooled and assigned vehicle utilization records.
• Annually tables Fleet Status Reports, including recommendations for any adjustment of vehicle
assignments, with the City Manager and Senior Staff.
• Ensures the purchase of vehicle and equipment assets complies with all municipal policies and
procedures.
• Must ensure vehicle and equipment asset purchases are sufficiently funded and charged to the
correct budgets.
• Must ensure all vehicle and equipment assets are duly processed and identified before they are
provided to the receiving Service Area.
• Must ensure all vehicle records are entered and maintained.
• Must keep the Fleet Procedures Manual current.
• Coordinate operating training for new vehicle and equipment assets.
4.2 SERVICE AREAS
• Serve as Asset Assignees.
• Define the operational service requirements which shape the Fleet.
• Collaborate with Fleet Services in administering vehicle pools.
• Ensure vehicle and equipment assets added to the respective inventory are properly approved
and funded.
• Must ensure Province of New Brunswick licensing, annual Motor Vehicle Inspections and
Preventative Maintenance Programs are scheduled and completed in a timely fashion.
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• Vehicles and/or equipment assigned are appropriately utilized for the purpose for which the
municipality acquired each respective asset.
• Must ensure vehicles and equipment assets are operated in an acceptable manner in
accordance with the Service Level Agreements.
• Must ensure licensed drivers and operators are appropriately trained on the safe and efficient
operation of all vehicle and equipment assets.
4.3 EMPLOYEES
• Serve as Asset Stewards
• Shall adhere to applicable laws and regulations, as well as to Fleet Management and Safety
Policies and Procedures of the City of Saint John.
• Shall satisfy all Canada Revenue Agency (CRA) reporting requirements as stipulated in this
Policy.
5. MONITOR AND REVIEW
This Policy will be reviewed every 3 years, and as determined by the City Manager.
6. IMPLEMENTATION
This Policy will be implemented under the authority of the City Manager by the Fleet Services Division of
Finance and Administrative Services.
7. AUTHORIZATION
This Policy shall be authorized by the City Manager pursuant to a resolution of Common Council
approving the associated "Fleet" Policy Statement.
8. RESOURCES
The City recognizes that a successful fleet program depends upon the employees of the City of Saint
John along with various service providers.
9. PROCEDURES
9.1 VEHICLE AND EQUIPMENT ASSET ACQUISITIONS
In aiding the City of Saint John with the decision to obtain vehicles and equipment assets, Fleet
Management will be required to evaluate and recommend an optimal replacement point (ORP) in
replacing equipment to become part of the City of Saint John vehicle and equipment assets. Service
Areas will seek input from Fleet Management on any council report involving the City's fleet and
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equipment assets and obtain council approval when required prior to any permanent additions to the
fleet. The input from Fleet while not limited to, will entail a recommendation in the form of a purchase
(new or used), lease (new or used), or alternative transportation provisions (i.e. allowance or
reimbursement of tangible employee private vehicle usage) where operationally appropriate and so
approved.
9.2 FUNDING
The City of Saint John has established a Fleet Reserve Fund to support the annual cost to replace existing
vehicle and equipment assets. Funds allocated to the reserve fund are acquired through monthly fees
charged to Service Areas on a vehicle by vehicle basis as needed. User fees are calculated based on the
Estimated Cost of Replacement and estimated useful life of individual vehicles.
Funds acquired and accumulated in this manner are to be used to fund the cost to replace existing
vehicle and equipment assets only. These funds will be subject to applicable audits.
Acquisitions of new vehicles or equipment are not supported from the Fleet Reserve Fund unless a
specific vehicle reserve has been previously approved and established.
9.3 REPLACEMENTS THROUGH THE USE OF OPTIMUM REPLACEMENT POINT (ORP) ANALYSIS
Fleet Management will identify when a vehicle and/or equipment asset has attained or exceeded their
ORP. As a part of the Fleet Replacement Program Fleet Management will replace vehicle or equipment
assets which are at or beyond their useful life including consultation with the related Service Area in
accordance with City of Saint John Purchasing Policy. The ORP calculation takes into account the year,
mileage, overall condition of the vehicle, the ratio of maintenance to the initial cost of purchase and
overall mechanical condition.
9.4 LIBRARY OF STANDARD VEHICLE AND EQUIPMENT ASSETS SPECIFICATIONS
In an attempt to simplify and standardize the acquisition of all vehicles and equipment, Fleet
Management will maintain a data base of general specifications to identify the basic common items
required for each class of vehicle and equipment assets. Purchases will take into account the
standardization of vehicle and equipment asset specifications.
9.5 NEW VEHICLE TRAINING
Fleet Management shall ensure new vehicle training is provided to applicable City of Saint John staff,
(i.e. Fleet Management Mechanical Staff, Service Area drivers/operators) of additional or new assets.
9.6 POOL OF VEHICLES
In keeping with the principle that all assets are owned by the City of Saint John, the City may, through
Fleet Management or the Service Area, choose to operate a pool of shared vehicles to be used by one or
more operators or Service Areas. The costs to operate a pool of shared vehicles shall be recovered
through usage charges to Service Areas as provided for in Service Level Agreements.
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9.7 TEMPORARY/RENTAL VEHICLES
No Service Area shall obtain the use of, or acquire a rented or leased vehicle to add to the current fleet
inventory or replace a current vehicle and/or equipment asset without authorization from Fleet
Management unless in an emergency or through the normal operation of a supply agreement. In
partnership with the Service Area, Fleet Management will determine if there is a suitable transportation
alternative already part of the fleet inventory or other cost effective transportation options.
9.8 SERVICE LEVEL AGREEMENTS (SLA)
Fleet Management will establish, with each Service Area, a Service Level Agreement to outline the
Service area's operational and maintenance responsibilities. Service Level Agreements will detail the
various levels, quality and charge rate of services to be provided by Fleet Management.
9.9 FLEET VEHICLE APPEARANCE STANDARD
In an effort to maintain professional standards, operators along with Fleet Management and Service
Areas will work together to maintain the overall condition of the vehicle. Vehicle maintenance will
include periodic exterior cleaning, regular interior cleaning and repairs to body and paint when needed.
9.10 VEHICLE AND EQUIPMENT FUEL, SUPPLIER CARDS AND LUBRICANT SUPPLY
All City of Saint John vehicles and equipment require either gasoline or diesel fuels supplied by
purchases from a fuel supplier or the FM fuel truck. FM provides a supplier fuel card for all departmental
vehicles and equipment in order for the responsible operator to acquire fuel at various supplier
locations throughout Saint John.
The operator is responsible for entering the applicable information (i.e. vehicle ID, current odometer
reading, etc.) so as to activate and complete a fuel transaction. FM will maintain a record of each fuel
card issued for each vehicle and maintain an electronic record of odometer readings for all relevant
vehicles. The respective vehicle or equipment fuel card must remain with the vehicle/equipment and FM
will also ensure fuel cards are cancelled (where possible) in the event they are lost, stolen, or in some
way no longer required by the Department (including the disposal of the vehicle). FM will replace a
reported lost or stolen fuel card. Only diesel fuel is available for the FM fuel truck and transactions are
performed by the FM Fuel Truck employee.
All fuels charged are in accordance with the current market price, including the verification of fuel prices
and appropriate discounts. FM will also monitor all fuel consumption transactions to be appropriate and
account payments are correct. City of Saint John employees are not permitted to use personal
"consumer loyalty program" cards (i.e. "Air Miles", etc.) in conjunction with City of Saint John fuel
transactions. Departments are informed of any exceptions and discrepancies requiring a resolve by
liaising with the fuel supplier and/or Department. FM will also provide all lubricants necessary for
operators to perform at appropriate level services.
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Asset Assignee: The client who defines the service level requirement of the asset in terms of their own
operational needs to provide municipal services. The asset assignee is responsible for the security and
safeguarding of their assets.
Asset Manager: Oversees the strategic investments required to maintain existing assets, acquire new
assets, and dispose of surplus assets in response to the needs of the asset assignee in meeting their
operational service level requirements.
Asset Steward: Responsible for the maintenance and operation of existing assets within defined service
levels.
Door Rate: An hourly mechanical repair or applicable services rate for all bona fide vehicle and
equipment asset repairs provided by the Fleet Management division. The door rate will encompass all
related overhead costs (i.e. labour, administrative, operational costs, etc.) incurred annually by the Fleet
Management division.
Estimated Cost of Replacement: Future estimated total acquisition cost of replacement vehicle and/or
less the residual value of the current vehicle and/or equipment at the end of its useful life.
Fleet Procedures Manual: The manual maintained by the Fleet Management division which governs
everyday policy and procedures of the Fleet Management division activities.
Fleet Reserve Fund: This Fleet Management budget account is established to receive internal Service
Area vehicle and equipment asset fees for replacement of assets required to provide municipal public
services.
Optimum Replacement Point (ORP): The Optimum Replacement Point analysis of vehicle and
equipment assets is the combination of asset usage data including asset age, original acquisition cost,
total "life -to -date" repair and maintenance costs, life -to -date usage (i.e. odometer reading), fuel usage
and, overall mechanical condition verified by visual inspection.
Senior Management : Are the incumbents at the highest management levels in each Service Area being,
for example; the Commissioner, the Fire Chief or the Department Manager.
Stewardship: Is the act of accepted operational, utilization, and management of City of Saint John
vehicle and equipment assets.
Useful life: The estimated period of time over which the future economic benefits or future service
potential embodied in a City of Saint John Vehicle and/or equipment asset is expected to be consumed
by the municipality.
Vehicle and Equipment Assets: City of Saint John motorized assets, owned by the municipality and,
whereas applicable and as required by the Province of New Brunswick, registered and licensed in the
City of Saint John name including sedans, light and heavy commercial trucks, construction equipment
and, various miscellaneous Province of New Brunswick non -licensed exceptions (i.e. arena ice-
resurfacers, off-road vehicles and equipment) requiring consideration for replacement and funded by
the Fleet Reserve Fund.
Vehicle registry: Is the controlled register recording the financial and other key details for all municipal
vehicles recognized in accordance with this policy.
11. INQUIRIES
Inquiries regarding this Policy can be addressed to the City of Saint John's Fleet Services Division,
Finance and Administrative Services.
12. APPENDICES
None
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