Administrative Brief
COMMISSION INFORMATION MEMORANDUM
VOL. 26, NO. 31
October 8, 2004
ADMINISTRATIVE BRIEF FROM SHAWN O'LEARY:
In June 2002, the Central Garage completed a fleet management analysis with the help of
Transportation Consultants, Inc. of Atlanta, Georgia. The purpose of the analysis was to
review current operating practices and make recommendations regarding service and
efficiency improvements. The Central Garage is responsible for 280 units of rolling stock
(wheeled, self-propelled vehicles) and a number of other units (compressors, chain saws,
etc.). Our current Fleet Superintendent, Mr. Bob Peck, joined the department in October
2001 and has focused his attention on the recommendations made in that analysis. The
results have been very favorable.
The Central Garage operates as an "internal
service fund" within the City's budget. This
means that each city department budgets for
their expected vehicle maintenance and
fueling needs within their own operating
accounts and then fees are paid internally to
the Central Garage on a monthly basis for
those services as rendered. It has been a
challenge for many years for the Central
Garage to meet its annual budget projections
while attempting to keep rates low and service
standards high. The current labor rate is $48
per hour which is below the local industry
average. The current parts markup rate is 10
percent, which is well below industry standards especially in light of our reduced purchase
cost for parts due to government discounts. Finally, there is a 10-cent per gallon markup on
fuel to cover the cost of operati ng the fuel i ng faci I ity. Some i nteresti ng operati ng proced u res
have been developed in the past two years to enhance the efficiency of the Central Garage
as follow:
0 Other non-City government operations have been encouraged to use the Central Garage
services in an effort to increase the economy of scale. Most Saline County departments
currently use our services, with the Sheriffs Department providing a large volume of work.
The City-County Building Authority is an example of a small agency that accesses our
services. The most recent addition has been the Salina Housing Authority in September
2004. That agency joined our program as a budget-cutting measure and found our
service rates and standards to be superior to their previous private sector arrangement.
0 A new fleet software program called Dossier 32 was purchased in 2003 to improve the
management of the fleet. This truly revolutionized our data management, improved
communications with our customers and continues to enhance the efficiency of the
operation.
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0 The Fleet liaison Team, made up of 15 city and county representatives, meets regularly
to review issues and solve problems.
0 Competitive bids are now solicited from parts and material suppliers, on a categorical
basis, resulting in annual fixed-price purchasing contracts. For instance, a 20% savings
has been realized in the purchase of filters with this method. While gas prices have
increased at the pump, the city's rate to our customers has remained around 20% under
the retail prices.
0 The overall goal is to convert our fleet services from the 30/70 preventative
maintenance/general repair ratio in 2002 to a 70/30 PM ratio in 2007. Many factors affect
this ratio. With all of the new programs under way and others in the development stage,
Central Garage is well on their way to accomplishing this goal.
The operating budget results for Central Garage has improved each year since 2002.
However, more improvements in operating procedures and service levels are needed. Our
capable staff, under the leadership of Mike Fraser and Bob Peck, will continue to bring
improvements and innovations to this complex area of city government services. In the end,
our citizens can be assured that our vehicles and equipment will operate safely, efficiently
and dependably to meet their service expectations under any circumstances that we face.
MONDA V'S MEETING:
1. Enclosed are other items on the agenda. If any Commissioner has any questions or
cannot attend the meeting, please contact me.
2. let's begin the study session at 2:30 p.m. An agenda is attached.
Dennis M. Kissinger
City Manager