Fleet consolidation Craig Croner, CPFP Administrative Services Manager City of Boise, Idaho
entralizing fleet management activities from a previously decentralized business model can be a daunting task. This process inevitably results in a general reduction of operational control and will most likely affect change management within departments. Pushback will likely ensue in several areas such as procurement, preventive maintenance scheduling and outsourced vehicle repairs. Since most departments involved with the centralization process will have competing interests, it is vital that the fleet centralization project be conducted with executive management support in conjunction with an open, transparent communication strategy.
deciding when to replace vehicles. In fact, there were no City policies that set standards and criteria for replacing vehicles. As a result, the overall fleet utilization was low, fleet asset count was high, and Fleet Services was completely decentralized.
In 2007, the City of Boise performed a fleet management study that resulted in a directive to centralize and optimize all fleet operations. The study was performed by City staff in coordination with Mercury and Associates. For purposes of this project “optimize” meant achieving a balance between the best services to fleet users at the lowest possible overall cost. A Fleet Strategic Plan was created that identified the goals and made recommendations on how to best achieve them. After further review of the goals and the extent of the consolidation project, it was decided that Step 1 would be to recruit and hire a dedicated Fleet Manager.
Major goals identified by the Fleet Strategic Plan and tracked on the Gantt chart are shown below:
Fleet activities in Boise at that time were substantially decentralized. Departments were responsible for developing their own asset management strategy including 44 APWA Reporter
September 2012
In order to promote an open, transparent communication strategy a Gantt chart was created to identify objectives and time frames for goal accomplishment. We successfully used the Gantt chart in briefings for executive management and in communication with departments. This tool provided the right mix of information for both groups and facilitated change management for everyone.
• Information Technology Administration and Implementation – Develop a centralized Fleet budget – Create a Fleet Advisory Board – Update business plans to reflect the reorganization of Fleet Services • Policies and Regulations – Analyze peer city policies and regulations – Create draft policies and regulations • Fleet Replacement Planning – Develop Fleet replacement criteria
– Develop Fleet replacement policy – Conduct a right-sizing analysis – Develop long-range replacement plan – Analyze alternative financing approaches • Cost Control, Cost Allocation and Charge-back Rates – Develop the Fleet budget further to include capital costs, maintenance and repair costs, fuel costs and the appropriate allocation of indirect and overhead costs – Develop capital cost chargeback rates – Develop operating costs chargeback rates • Fleet Management Information System (FMIS) – Identify budget for FMIS acquisition – Develop FMIS specification criteria – Obtain Council approval to fund the FMIS – Place FMIS specifications out to bid – Implement FMIS • Maintenance Operations – Consolidate supervision and management of remotely located technicians – Create an office for the new Fleet Services Manager – Develop and implement an outsourcing policy that has the
