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Charlotte-Mecklenburg Fleet Maintenance Consolidation Proposal

Charlotte-Mecklenburg Fleet Maintenance Consolidation Proposal. Background. County and City began discussion in August 2006 Board Bulletin September 29, 2006 BSS submitted proposal in February 2007 County completed evaluation in May 2007 Board Bulletin May 25, 2007

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Charlotte-Mecklenburg Fleet Maintenance Consolidation Proposal

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  1. Charlotte-MecklenburgFleet MaintenanceConsolidation Proposal

  2. Background • County and City began discussion in August 2006 • Board Bulletin September 29, 2006 • BSS submitted proposal in February 2007 • County completed evaluation in May 2007 • Board Bulletin May 25, 2007 • County Leadership Team approved development of a consolidation proposal in June 2007 • Board Bulletin July 13, 2007 • Service Level Agreement established in December 2007 • Proposed Budget Submitted in January 2008 • Inter-local Agreement negotiated April 2008

  3. Focus of Consolidation • Is it good for Taxpayers? • Saves County taxpayers over $700,000 over 3 years • Reduces per vehicle cost for both City and County • Greater accountability for fleet costs • Is it good for fleet users? • Specific, measurable Service Level Agreements • More service options • Advance asset management techniques for fleet and equipment assets

  4. Focus of Consolidation • Is it good for County fleet employees • Employees are kept whole within the consolidation framework: • Move to an equal level classification • Initial salary will be unchanged • Time served with County will count as City service time for benefits (vacation & sick time accrual, retirement medical insurance, etc.) • Maintain longevity pay (frozen at current level) • Greater opportunity for advancement • More supervisory opportunities (3 shift supervisor and 3 shop supervisor positions) • More Management opportunities (4 shop manager positions growing to 5 in two years) • ASE Certification program for skill based pay adjustments

  5. City’s Qualifications • City’s Equipment Management Division (EMD) has competed and won in the City’s competition program. • In 2005, City’s Privatization & Competition Advisory Committee (PCAC) recommended moving EMD from competition to benchmarking based on performance • EMD named the 4th best managed fleet in the country (public or private) by Fleet Equipment Magazine. • All 3 EMD shops are Blue Seal Certified by the National Institute of Automotive Service Excellence • EMD is a certified warranty service provider for Ford and GM light vehicles • EMD Fleet Manager is Certified Fleet Manager by the Association of Equipment Management Professionals

  6. Consolidation Proposal • Scope of Service • Approximately 1,100 Light Vehicles (Includes Sheriff’s Vehicles) • Approximately 435 pieces of small equipment and trailers • Management Plan • Centers on Automation and Advanced Asset Management • Operating Plan • Mirrors current EMD operations • Cost Model • Full Cost Recovery • Proportionate Allocation of Equipment Management Division (EMD) overhead

  7. Management Plan • Management Plan • Fleet Asset Management System (Faster) • County Asset Ownership Change • Equipment from Shop to Department • Budget from Shop to Department • Fleet Coordinators • County & Departmental Level • Participation in City’s Fleet Management Advisory Team • Financial Management Process • Electronic invoice workflow • Monthly Service Statements • Cost Factor Analysis

  8. Operating Plan • Operating Plan • Service Level Agreement Driven • Target Services • Preventive Maintenance (PM) Services • Routine and Predictable Maintenance Services • Non-Target Services • Non-predictive Repairs and Services • Customer-Directed Work • Performance Measures • Technician Certification • Customer Service

  9. Cost Model • Cost Model • Maintenance Cost Recovery Model Assumptions • Technician Annual Hours – 1,588 • Required Maintenance Bays – 18 • Vehicle to Technician Ratio – 1:92 • Target Services - 80% • Non-Target Services – 20% • Administrative Cost Recovered through Vehicle Administrative Fee • Parts Cost Recovered through a Cost Plus Model

  10. Financial Impacts • Anticipated reduction of County fleet maintenance budget • Flat 3 year anticipated saving of over $700,000 • Reduction in 6 positions • Reduction of $127,000 in Sublet Costs • Reductions of $97,000 in Parts Cost • Spreading of City overhead cost • $190,635 annually • Flat 3 year savings of $571,905

  11. Next Steps • Mecklenburg County Board of Commissioners considers Inter-local Agreement on May 7th • City Council considers Inter-local Agreement on May 12th • Budget Approved through City and County annual budget process • Consolidation effective July 1st

  12. Questions

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