Agenda

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C.66

To:	Board of Supervisors
From:	INTERNAL OPERATIONS COMMITTEE
Date:	January 18, 2011

Contra

Costa

County

Subject:

Fleet Internal Service Fund FY 2009-10 Report

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 01/18/2011

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Mike Lango-313-7100

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: January 18, 2011
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

Accept the Fleet Internal Service Fund report for FY 2009-10 as recommended by the Internal Operations Committee.

FISCAL IMPACT:

None.

BACKGROUND:

The Board of Supervisors approved implementation of a Fleet Internal Service Fund (Fund 150100) as part of the FY 2008-09 budget as a method to ensure stable and long-term vehicle replacement funding. The Fleet ISF was initially funded with $3.6 million from accumulated vehicle depreciation.

BACKGROUND: (CONT'D)

ISF Rate Structure

There are three components to recover vehicle operation costs in the Fleet ISF: 1) Departments are charged actual costs for fuel; 2) a variable cost based on mileage to cover maintenance and repair costs; and, 3) a fixed cost to cover insurance, fleet overhead, and vehicle depreciation/replacement.

During FY 2009-10, the budgeted variable and fixed charges for ISF vehicles were $6,144,477. The actual costs for ISF vehicles were $5,697,850, a difference of $446,627. The estimated variable and fixed costs are adjusted each year to develop ISF rates as close to actual costs as possible for each class of vehicle. Accordingly, the FY 2010-11 ISF vehicle rates have decreased as shown on the ISF rate schedule (Attachment C).

The Fleet ISF continues to achieve the primary goals and objectives of maintaining a high-quality fleet at the lowest possible cost. The Fleet Services Division of the General Services Department continues to monitor vehicle use to optimize new vehicle acquisition and better utilize existing vehicle assets consistent with departmental needs and requirements. Please reference Attachments A, B, C and D.

The projected ISF Fund Balance for FY 2010-11 is $9,283,218. There are 41 fewer vehicles in the Fleet ISF than when the ISF was initiated in 2008.


Fleet 1SF Goals and Objectives

Improve planning/focus on long-term stability of the County's vehicle assets
Manage and maintain vehicles as County assets as opposed to department assets
Maintain a newer fleet and improve vehicle availability and use
Reduce administrative costs by reducing appropriation adjustments and requisitions
Establish and maintain stable vehicle replacement funding
Increase resale value of surplus vehicles

Highlights

798 vehicles in the lSF (320 sedans, 112 patrol vehicles, and 366 trucks/vans)
The Sheriff received 56 new vehicles (28 patrol vehicles)
Vehicles were ordered and put into service earlier in the budget year
ISF rates will decrease in FY 2010-11

CONSEQUENCE OF NEGATIVE ACTION:

None.

CHILDREN'S IMPACT STATEMENT:

None.