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PRESENTATION OF FLEET AND FUEL CONSOLIDATION BUDGET AND FISCAL AFFAIRS COMMITTEE AUGUST 31, 2010

PRESENTATION OF FLEET AND FUEL CONSOLIDATION BUDGET AND FISCAL AFFAIRS COMMITTEE AUGUST 31, 2010. Fleet Management. CURRENT PRACTICES The City currently has 6 independent departments which provide fleet services : Solid Waste Public Works & Engineering Houston Fire Department

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PRESENTATION OF FLEET AND FUEL CONSOLIDATION BUDGET AND FISCAL AFFAIRS COMMITTEE AUGUST 31, 2010

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  1. PRESENTATION OF FLEET AND FUEL CONSOLIDATION BUDGET AND FISCAL AFFAIRS COMMITTEE AUGUST 31, 2010

  2. Fleet Management • CURRENT PRACTICES • The City currently has 6 independent departments which provide fleet services: • Solid Waste • Public Works & Engineering • Houston Fire Department • Houston Police Department • Parks and Recreation • Aviation

  3. Current Annual Costs • $154m annual expenditure ($106m is operating costs) • $28m fuel annually in fuel (at current costs) including delivery • 486 full time employees – maintenance and fleet support

  4. Recommendation • Savings will likely require the formation of “The City of Houston Department of Fleet Management”. • Two year timeline and plan for City wide fleet consolidation • The reduction of fuel sites from 99 to a number below 43 • The consolidation and reduction of maintenance facilities from 29 to less than 15 • The implementation of a strategic vehicle parts partner and the aggressive consolidation and re-sizing of the vehicle asset base • Vehicle assignment and fleet re-sizing

  5. Fleet Management • Measurable cost savings of a centralized fleet management system • Elimination of redundant processes and functions • Implementation of standard, streamlined “best practice” policies and procedures • Sharing of vehicle assets • Centralized maintenance management • Centralized purchasing and warranty contracts • Centralized motor pool and vehicle assignment practices

  6. Fleet Management • PROJECTED SAVINGS OF CONSOLIDATING FLEET MANAGEMENT: • $21.8 m in the next 2 fiscal years • $10m in FY11 • $11.8m in FY12

  7. Fleet Management • Vehicle Assignment Modifications and Fleet Re-sizing (take home vehicles) • Part of this consolidation will be the implementation of guidelines for take home vehicles • Consolidation of the City’s light duty automobile fleet and implementation of a centralized motor pool process • Consolidation of truck fleet (heavy and light) • Disposition of sellable assets for maximum price

  8. Fleet Management • Strategic Vehicle Parts Partner Implementation • In 2007, Public Works & Engineering implemented a contract with the Genuine Parts Company’s Integrated Business Systems Division (NAPA) for provision of replacement parts for their maintenance facilities. • This has now been expanded to selected Parks vehicle maintenance facilities

  9. Fleet Fueling Centers Consolidations • Current Practices • All remote fuel management is done centrally through General Services Department • The City purchases approximately 10 million gallons of fuel annually • More than half of the existing city owned fuel sites are not controlled by computerized Fuel Force site units.

  10. Fleet Fueling Centers Consolidation • Result gained through consolidation • Standardized procedures • Reduction in number of fuel sites and tanks • Reduced transport costs for fuel deliveries • Complete and accurate fuel data • Improved emergency preparedness • Lower debt service in the long term • Less risk of environmental issues

  11. QUESTIONS

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