October 13, 2009

1. Fleet Forum Presentations by DFO Staff October 13, 2009

2. Forum Outline • New Utilization Model • Update on the DFO Telematics Pilot • CNG – Use and Conversions • Cutting Fleet Costs • Update on the Sept 16th Legislative Subcommittee Meeting • Short Fleet “Reminders”

3. New Utilization Model Sam Lee

4. New Fleet Utilization Model • Short history on vehicle utilization • 5% reduction in 2003 • Minimum mileage at 625 (minimum miles per month to reach 90,000 miles in 12 years) • “Low use” categories • Summer use, winter use, campus use, etc. • In FY09 (vehicles in service for all 12 months) • 37% of the fleet traveled less than 500 miles per month • 12% of the fleet traveled less than 100 miles per month

5. New Fleet Utilization Model • Why a change? • “Right size” the state fleet • This is a core function in fleet management • Reduce vehicle costs • Increase efficiency • Old method just documented “low use” vehicle • Moves away from a “one size fits all” minimum mileage approach • Compares vehicles in the fleet according to the “Use” of the vehicle

6. New Fleet Utilization Model Five High Level Use Categories • Emergency • Units Designated for Enforcing Public Safety • Maintenance • Vehicle Used to Maintain Facilities • People Transport • Primarily Transports People • Supply Transport • Primarily Transports Items Other Than People • Training • Units are used for Educational Purposes

7. New Fleet Utilization Model • High level Categories have multiple “Mid Level” Categories

8. New Fleet Utilization Model

9. New Fleet Utilization Model

10. New Fleet Utilization Model

11. New Fleet Utilization Model

12. New Fleet Utilization Model • Example of how it works… Two separate “General Maintenance” vans are used by an agency in the same area One of the vans doesn’t meet the minimum mileage (34 miles month) for the “use category” and is subject to pooling or turn-in

13. New Fleet Utilization Model • Questions about the new model...? • Will the minimum mileages increase Yes, We will adjust once a year • How often will we come to talk about Utilization? At least quarterly • Do we have all state vehicles documented? No, we started with the vehicles designated as low use • Are there any vehicles that will be permanently excluded from this utilization audit? Yes, some vehicles are needed regardless of the mileage history

14. What is the next step? Angie Watson will be calling to set up meetings with fleet contacts We will send a document ahead of time to let you know which vehicles we propose to pool or eliminate Angie will continue to document fleet vehicles This first round of cuts just included the old “low use” vehicles “Capital Credit” for 5 years New Fleet Utilization Model

15. New Fleet Utilization Model • Updating Fleet Focus • “User Instructions” were emailed by Angie Watson on Monday October 13th

16. New Fleet Utilization Model • How many vehicles do we expect to have turned in this year…?

17. Questions?

18. Update on Telematics Scott Bingham

19. Update on Telematics Where We Started Where We Have Been Where We Are Where Will our Final Destination be?

20. Where We Started Fleet Industry Publications and Articles "After our initial pilot evaluation…we determined that the savings in fuel costs alone would pay for the system” GF Telematics has proven useful to fleets in reducing fuel consumption, idling, emissions, and keeping track of company vehicles” AF

21. Where We Have Been Initially 2 random vehicles were selected at our Draper location to be involved with the Telematics Pilot Program Chevrolet Impala Chevrolet Malibu

22. Where We Have Been South of Santaquin and Payson 75 mph posted speed limit 95 Miles Per Hour

23. Where We Have Been Northeast of Koosharem 65 mph posted speed limit 94 Miles Per Hour

24. Where We Have Been West of Salt Lake City 75 mph posted speed limit 122 Miles Per Hour

25. Where We Are Now In-Cab Mentoring Posted Speed Limit Violations Seat Belt Use Aggressive Driving Accidents 01-Speeding Violation 03-Please Buckle Your Seatbelt 04-Aggressive Driving

26. Where We Are Now Graphically illustrates a drivers behavior and gives the driver a “score”

27. Where We Are Now In-Cab Mentoring % of distance speeding

28. Where We Want to Go Risk Energy “On-the-Clock” issues Public Perception

29. Questions?

30. CNG Use and Conversions Sam Lee

31. Why CNG in the State Fleet…? • Environment benefit • Potential cost savings over time • Decreases our dependence on foreign oil • Local produced fuel • The refueling infrastructure in Utah is good especially along I-15

32. CNG in the State Fleet • What we are planning to do in model year 2010? • Continue purchasing CNG vehicles where they are available from the manufacturer • Honda Civic • Convert vehicles where it is feasible and reasonably cost effective

33. CNG vehicles in the State Fleet • What can you do? • Carefully consider how a CNG vehicle could fit into your agency • This may mean moving some vehicles around • This may mean a short term vehicle rental when you will be off the CNG refueling corridor • Being creative about vehicle use to accommodate the additional tanks

34. Questions?

35. Margaret Chambers, Division Director Fleet Operations and Surplus Services September 16, 2009 “Reducing State of Utah Fleet Costs” A Response to Questions by Senator Stowell

36. Presentation Outline Cost Efficiencies Already Implemented Being Tested Potential New Strategies/Legislation

37. Cost Efficiencies Already in Place ¾ Ton Truck To a Compact Truck 1. Standard replacement mileage for state vehicles increased from 90,000 to 105,000 miles in FY09 $1.8 million /year savings 2.“Rightsizing” vehicles at replacement time • The default replacement vehicle is a compact sedan • Agencies must “justify up” to a larger vehicle when a compact will not be feasible 116 rightsize vehicles past 2 years

38. Cost Efficiencies Already in Place 3. Expansion Vehicles Fleet provides an underutilized vehicle report to GOPB and LFA DFO is working with GOPB to rightsize expansion vehicles 4. Take Home Approvals The supervisor and department director must annually sign off on all take home privileges granted to employees

39. Cost Efficiencies Already in Place 5. Privatization in the State Fleet Short Term Daily Pool Services Enterprise Rent-A-Car Maintenance and Repair Facilities Most of the work on state vehicles is completed at private vendor locations Coordination, Approval and Billing Services for Maintenance and Repair All vehicles leased from DFO have repairs authorized by Automotive Resource International (ARI)

40. Cost Efficiencies Already in Place 6. Fleet Data Audits Zero Miles Report Cost Per Mile (CPM) Audit Identifies vehicles with higher than the average repair cost per mile Miles Per Gallon (MPG) Audit Identifies fuel theft or fuel card problems when the MPG is higher/lower than the average in the vehicle class Utilization Audits Identifies vehicles not meeting the minimum mileage standard

41. 7. Capital Credit Program Voluntary surrender of a vehicle Reserve the vehicle count and the capital credit for up to 5 years Agency budgets are not cut by the lease and mileage amounts FY09 - 13 vehicle were turned in Cost Efficiencies Already in Place

42. 8 Cost Savings by Agencies Last Fiscal Year 3 million miles reduction Decrease of 3.6 % $418,000 for leased vehicles Personal Owned Vehicle Reimbursement reduced by $575,000 Cost Efficiencies Already in Place

43. Cost Efficiencies Already in Place 9. Reducing Vehicle Liability (Risk Management) Verify valid driver’s license (Checked weekly) Defensive Driver Training classes offered by Fleet staff Full size van training Classroom defensive driver training required after a 2nd preventable accident Additional restrictions are in place for full-size passenger van drivers New “Driver Eligibility Board”

44. Cost Efficiencies Already in Place 10. Promotion of Fuel Saving Practices DFO Developed Brochures Fleet Web Site Fleet User and Energy Team Meetings (“train the trainer” focus on fuel saving practices) 11. All meetings offered by DFO have web conferencing option Saving Fuel

45. Cost Efficiencies Already in Place 12. AARA Funds through Clean Cities Grant (for use over next 2 years) Vehicle Purchase 13 Dedicated CNG vehicle purchase 30% match of CNG incremental cost $39,000 149 Hybrid vehicle purchase 20% match of incremental Prius cost 40% match of incremental Malibu cost Up to $296,000 CNG conversions 30% match of conversion cost up to $337,500

46. Cost Efficiencies Already in Place 12. AARA Funds through Clean Cities Grant - continued (for use over next 2 years) CNG Site Upgrade 6 Sites 30% match of upgrade cost - up to $178,860 New CNG Sites – if State funds are made available 2 Sites 30% match of construction cost – up to $298,100 Total $1,000,410 available for the State of Utah $702,310 from matching funds already available

47. Reduction strategies being tested by DFO 1. Use of telematics to gather data about the vehicle Two different vendors are being evaluated Networkcar (22 vehicles in a pilot program) Inthinc (50 vehicles in a pilot program) Traditional GPS technology + “In Cab Mentoring” Reduce speed (“speed by street” technology) Reduce idle time Reduce aggressive driving Reduce unauthorized personal use Reduce accident costs

48. Reduction strategies being tested by DFO 2. New Vehicle “Utilization Model” Moves away from a “one size fits all” minimum mileage standard Each fleet vehicle is put in a “vehicle use” category Vehicles with similar uses are compared against each other “Minimum mileage” standards are set according to use in “like vehicle” categories For example: two “maintenance vans” are used in the same area The van that doesn’t meet the minimum mileage for the “use category” is subject to turn in

49. Reduction strategies being tested by DFO 3. Refining maintenance schedules to eliminate any unnecessary preventative maintenance costs

50. New Strategies/Legislation to Reduce Fleet Costs Reduction Strategies Reduce agency budget Reduce the number of miles Require vehicle idle reduction Reduce take home vehicles Reduce the number of vehicles