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Equipment Fleet Management

Equipment Fleet Management. Maximizing your fleet performance at least cost. County Road Administration Board. Program Agenda. Introduction Fleet Makeup Standard Operating & Limited Use Equipment Life Cycle Costing & Rates Costs & Overhead, User Input, Basic Calcs Accounting Questions?.

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Equipment Fleet Management

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  1. Equipment Fleet Management Maximizing your fleet performance at least cost. County Road Administration Board

  2. Program Agenda • Introduction • Fleet Makeup • Standard Operating & Limited Use Equipment • Life Cycle Costing & Rates • Costs & Overhead, User Input, Basic Calcs • Accounting • Questions?

  3. Background • Fleet Operations are a Fact • $ Millions Invested • Short of Replacement Funds • Poor Documentation of Costs • “Still Runs Doesn’t It?” Mentality • Washington State Legislature Requires • RCW 36.33A – 1977 ER&R Law • It’s all about saving money!

  4. Walla Walla County, WA Typical County Fleet Seal Coat Operations

  5. Targeted Replacement Life Cycle Costing Amortized Replacement Cost Cost Operation & Maintenance Time

  6. LCC Elements • Amortized Replacement Cost • Initial Purchase Cost Less Salvage Depreciated over Expected Life • ($250,000 - $25,000) ÷ 15 = $15,000 / Yr • Operating Costs Annualized • Fuel and Lubricants • Repair Parts and Labor • Facilities • Management & Administrative Overhead

  7. Fleet Mgr’s Responsibilities • Repairs • Rates • Replacement Schedules • Manage Shop & Fleet Maintenance Crews • Communicate • Formal (Written & Meetings) & Informal • Select Fleet Equipment

  8. Fleet Composition • Help Users Decide What They Need(And Can Afford!) • Full Time Operations Equipment • Items used often and regularly • e.g. Cars, Dump Trucks, Graders • Limited Use Equipment • External Equipment **

  9. External Equipment • Has the equipment really reached its economic life? • Do the vehicle charges cover the true overhead costs of maintaining the fleet and that vehicle? • Are any inflationary costs covered if they are replaced?

  10. Full Time Equip Justification • Based on needs & service levels • Documented • Right size for task • ½ Ton Pickup or 2 Ton Truck ? • Bobcat Skidsteer or Cat 953 ? • Sedan or 4WD SUV ?

  11. Limited Use Equipment • Efficiency of the overall operation • Dispersed Sheriff’s Vehicles • Special equipment • Snowplows & Sanding Boxes • Infrequent operations • Testing Lab Trailer

  12. LUE Justification Factors • Essential government services • Worker efficiency • Response availability • Unique characteristics • Other key factors

  13. LUE Justification • Cite specific legal mandates • Cite specific circumstances • Include a direct cost evaluation • Provide specific clear examples

  14. Setting Equipment Rates • Fleet Rates • Self Sustaining • Replacement & Operating Reserves • Annual Replacement + Emergency • Based on Life Cycle Costing • Equipment Classifications • Sub Classifications

  15. Classifying Equipment • Similar Design • Heavy Equipment – Graders, Trucks, Loaders • Light Equipment – Vans, Sedans, Pickups • Similar Use • 6 Yard Trucks vs. 10 Yard Trucks • Police Sedans vs. General Purpose Sedans • Regular vs. Limited Use

  16. Calculating Rates

  17. Input to Rates • User Knowledge • Accounting Records • Accounting & Billing System • Private Reimbursement vs. Fleet Use

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